Chapter 17 Takeovers and shareholder value creation on the stock exchange of Thailand

Abstract

There are few studies of take over effects in emerging stock markets and of whether such events result in value-increasing or value-decreasing effects for the successful targets and bidders. This study analyses the impact of successful takeovers on the Stock Exchange of Thailand (SET). Both target and bidding firms’ performances during a period of 12 months before and after the takeover are investigated. Abnormal returns are measured using an event study approach; applying two models and three parametric test statistics. The results suggest that Thai takeover effects are wealth-creating for both offeree and offeror shareholders.

Citation

Allen, D.E. and Soongswang, A. (2007), "Chapter 17 Takeovers and shareholder value creation on the stock exchange of Thailand", Kim, S.-J. and Mckenzie, M.D. (Ed.) Asia-Pacific Financial Markets: Integration, Innovation and Challenges (International Finance Review, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 347-370. https://doi.org/10.1016/S1569-3767(07)00017-9