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THE IMPACT OF MERGER AND ACQUISITION FIRMS ON STOCK MARKET BUBBLE

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36 Pages : 335-342

http://dx.doi.org/10.31703/grr.2019(IV-I).36      10.31703/grr.2019(IV-I).36      Published : Mar 2019

The Impact of Merger and Acquisition Firms on Stock Market Bubble

Abstract

    In this research, we have endeavored to ascertain how the Merger & Acquisition firms effect the Pakistani stock market (PSX) during all stages of bubble periods. The regression results of “transaction multiples” and “inverse transaction multiples” show that the trading of the securities of Merger & Acquisition firms has increased in all stages of bubble periods less crash period where they decreased. The regression results have also revealed that Pakistani investors in the stock market carry a “weak financial knowledge & financial risk distress management” & they prefer market manipulation for discounting & therefore, they are adversely hit market manipulations in the stock exchange while trading securities. Resultantly, managerial incentives, as well as cost of capital of Merger & Acquisition firms, stand increased with the help of relevance of accounting, Earnings manipulation & by exercise Investing Activities.

    History of Bubble; Stock Market Bubble, Firms Valuation, Earnings Management; Merger & Acquisition.

    (1) Waleed Khalid
    PhD Scholar, National University of Modern Languages Islamabad, Pakistan.
    (2) Kashif Ur Rehman
    Professor (Vice Chancellor), City University, Peshawar, KP, Pakistan.
    (3) Muhammad Kashif
    Head of Department,School of Business and Management,Minhaj University, Lahore, Punjab, Pakistan.
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Cite this article

APA

CHICAGO

    CHICAGO : Khalid, Waleed, Kashif Ur Rehman, and Muhammad Kashif. 2019. "The Impact of Merger and Acquisition Firms on Stock Market Bubble." Global Regional Review, IV (I): 335-342 doi: 10.31703/grr.2019(IV-I).36

HARVARD

    HARVARD : KHALID, W., REHMAN, K. U. & KASHIF, M. 2019. The Impact of Merger and Acquisition Firms on Stock Market Bubble. Global Regional Review, IV, 335-342.

MHRA

    MHRA : Khalid, Waleed, Kashif Ur Rehman, and Muhammad Kashif. 2019. "The Impact of Merger and Acquisition Firms on Stock Market Bubble." Global Regional Review, IV: 335-342

MLA

    MLA : Khalid, Waleed, Kashif Ur Rehman, and Muhammad Kashif. "The Impact of Merger and Acquisition Firms on Stock Market Bubble." Global Regional Review, IV.I (2019): 335-342 Print.

OXFORD

    OXFORD : Khalid, Waleed, Rehman, Kashif Ur, and Kashif, Muhammad (2019), "The Impact of Merger and Acquisition Firms on Stock Market Bubble", Global Regional Review, IV (I), 335-342

TURABIAN

    TURABIAN : Khalid, Waleed, Kashif Ur Rehman, and Muhammad Kashif. "The Impact of Merger and Acquisition Firms on Stock Market Bubble." Global Regional Review IV, no. I (2019): 335-342. https://doi.org/10.31703/grr.2019(IV-I).36