THE IMPACT OF MERGER AND ACQUISITION FIRMS ON STOCK MARKET BUBBLE

http://dx.doi.org/10.31703/grr.2019(IV-I).36      10.31703/grr.2019(IV-I).36      Published : Mar 1
Authored by : WaleedKhalid , KashifUrRehman , MuhammadKashif

36 Pages : 335-342

References

  • Aharon, D. Y., Gavious, I., & Yosef, R. (2010). Stock market bubble effects on mergers and acquisitions.The Quarterly Review of Economics and Finance,50(4), 456-470
  • Ahmed, A. (1998).Stock Market Interlinkages in Emerging Markets.Pakistan Institute of Development Economics.(No. 1998: 159).
  • Asker, J., Farre-Mensa, J., & Ljungqvist, A. (2011). Does the stock market distort investment incentives.Unpublished working paper, New York University.
  • Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: comparative loss recognition timeliness.Journal of accounting and economics,39(1), 83-128.
  • Basu, S. (1977). Investment performance of common stocks in relation to their price-earnings ratios: A test of the efficient market hypothesis.The journal of Finance,32(3), 663-682
  • Berkovitch, E., & Narayanan, M. P. (1993). Motives for takeovers: An empirical investigation.Journal of Financial and Quantitative analysis,28(3), 347-362
  • Bhattacharya, N., Demers, E., &Joos, P. (2010). The relevance of accounting information in a stock market bubble: evidence from internet IPOs.Journal of Business Finance & Accounting,37(3-4), 291-321
  • Bhojraj, S., & Lee, C. (2002). Who is my peer? A valuation-based approach to the selection of comparable firms.Journal of accounting research,40(2), 407-439
  • Bohl, M. T. (2003). Periodically collapsing bubbles in the US stock market? International Review of Economics and Finance, 12, 385-397
  • Brooks, C., & Katsaris, A. (2003). Rational speculative bubbles: An empirical investigation of the London Stock Exchange.Bulletin of Economic Research, 55, 319-346
  • Brush, T. H. (1996). Predicted change in operational synergy and post-acquisition performance of acquired businesses.Strategic Management Journal,17(1), 1-24.
  • Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses.Journal of accounting and economics,24(1), 99-126
  • Chang, T., Gil-Alana, L., Aye, G. C., Gupta, R., & Ranjbar, O. (2016). Testing for bubbles in the BRICS stock markets.Journal of Economic Studies,43(4), 646-660.
  • Chatterjee, S., & Lubatkin, M. (1990). Corporate mergers, stockholder diversification, and changes in systematic risk.StrategicManagement Journal,11(4), 255-268.
  • Chen, J. (1999). When the bubble is going to burst.International Journal of Theoretical and Applied Finance,2(03), 285-292
  • Chowdhury, A., Mollah, S., & Al Farooque, O. (2018). Insider-trading, discretionary accruals and information asymmetry.The British Accounting Review
  • Collins, D. W., Maydew, E. L., & Weiss, I. S. (1997). Changes in the value-relevance of earnings and book values over the past forty years.Journal of accounting and economics,24(1), 39-67
  • Conn, R. L., Cosh, A., Guest, P. M., & Hughes, A. (2005). The impact on UK acquirers of domestic, cross-border, public and private acquisitions.Journal of Business Finance & Accounting,32(5-6), 815-870
  • Costa, C. T., da Silva, W. V., de Almeida, L. B.,& da Veiga, C. P. (2017). Empirical evidence of the existence of speculative bubbles in the prices of stocks traded on the São Paulo Stock Exchange.Contaduría y Administración,62(4), 1317-1334
  • Cuñado, J., Gil-Alana, L. A., & Gracia, F. P. D. (2007). Testing for stock market bubbles using nonlinear models and fractional integration.Applied Financial Economics,17(16), 1313-1321
  • Dargenidou, C., Tonks, I., & Tsoligkas, F. (2018). Insider trading and the post-earnings announcement drift.Journal of Business Finance & Accounting,45(3-4), 482-508
  • De Franco, G., & Jin, J. (2008). The private company discount and earnings quality.한국회계학회기타자료집,2008(3), 54-104
  • Degiannakis, S., Giannopoulos, G., Ibrahim, S., & Rozic, I. (2017). Earnings management to avoid losses and earnings declines in Croatia.
  • Elnathan, D., Gavious, I., & Hauser, S. (2009). On the added value of firm valuation by financial experts.International Journal of Business and Management,4(3), 70-85
  • Elsevier.K BRUNNERMEIER, M. A. R. K. U. S., &Nagel, S. (2004). Hedge funds and the technology bubble.The Journal of Finance,59(5), 2013-2040.
  • Fama, E. F. (1965). The behavior of stock-market prices.The journal of Business,38(1), 34-105
  • Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The Adjustment of Stock Prices to New Information. International Economic Review, 10, 1-21
  • Felo, A. J., Kim, J. W., & Lim, J. H. (2018). Can XBRL detailed tagging of footnotes improve financial analysts' information environment?.International Journal of Accounting Information Systems,28, 45-58.
  • Ferreira, J. E. de A. (2009). Periodically collapsing rational bubbles in exchange rates: A Markov-switching analysis fora sample of industrialized markets. Studies in Economics, 1-32
  • Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance?.Journal of accounting Research,37(2), 319-352
  • Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accruals quality.Journal of accounting and economics,39(2), 295-327
  • Gilchrist, S., Himmelberg, C. P., & Huberman, G. (2005). Do stock price bubbles influence corporate investment?.Journal of Monetary Economics,52(4), 805-827
  • Hansen, R. G. (1987). A theory for the choice of exchange medium in mergers and acquisitions.Journal of business,75-95.
  • Hirshleifer, D. (2001). Investor psychology and asset pricing. Journal of Finance,56, 1533-1597
  • Hoppit, J. (2002). The Myths of the South Sea Bubble.Transactions of the Royal Historical Society,12, 141-165
  • Huddart, S., & Louis, H. (2007). Stock returns, earnings management, and insider selling during the 1990s stock market bubble.Unpublished working paper. Pennsylvania State University
  • Huddart, S., Ke, B., & Shi, C. (2007). Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings.Journal of Accounting and Economics,43(1), 3-36.
  • Jiang, Z. Q., Zhou, W. X., Sornette, D., Woodard, R., Bastiaensen, K., & Cauwels, P. (2010). Bubble diagnosis and prediction of the 2005-2007 and 2008-2009 Chinese stock market bubbles.Journal of economic behavior & organization,74(3), 149-162
  • Kindleberger, C. P. (1978): Manias, Panics, and Crashes: A History of Financial Crises. Basic Books
  • Koeplin, J., Sarin, A., & Shapiro, A. C. (2000). The private company discount.Journal of Applied Corporate Finance,12(4), 94-101.
  • Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary aaccrual measures.Journal of accounting and economics,39(1), 163-197
  • Lakonishok, J., Shleifer, A., & Vishny, R. W. (1992). The impact of institutional trading on stock prices.Journal of financial economics,32(1), 23-43.
  • Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them.Journal of Accounting research,37(2), 353-385
  • Lie, E., & Lie, H. J. (2002). Multiples used to estimate corporate value.Financial Analysts Journal,58(2), 44-54
  • Liu, J., Nissim, D., & Thomas, J. (2002). Equity valuation using multiples.Journal of Accounting Research,40(1), 135-172.
  • Ljungqvist, A., & Wilhelm, W. J. (2003). IPO pricing in the dot-com bubble.The Journal of Finance,58(2), 723-752.
  • Miller, E. M. (1977).Risk, Uncertainty, and Divergence of Opinion,Journal of Finance, 32(4), 1151-1168
  • Nel, S., Bruwer, W., & le Roux, N. (2014). An emerging market perspective on peer group selection based on valuation fundamentals.Applied Financial Economics,24(9), 621-637
  • Officer, M. S. (2007). The price of corporate liquidity: Acquisition discounts for unlisted targets.Journal of Financial Economics,83(3), 571-598
  • Ohlson, J. A. (1995). Earnings, book values, and dividends in security valuation. Contemporary Accounting.
  • Omran, M. F. (2003). Equity valuation using multiples in the emergingmarket of the United Arab Emirates.Review of Middle East Economics and Finance,1(3), 267-283
  • Orlitzky, M. (2013). Corporate social responsibility, noise, and stock market volatility.The Academy of Management Perspectives,27(3), 238-254.
  • Porter, D. P., & Smith, V. L. (2003). Stock market bubbles in the laboratory.The Journal of Behavioral Finance,4(1), 7-20
  • Pratt, S. P., & Pratt. (2001).Business valuation discounts and premiums. New York, NY: Wiley.
  • Raman, K., & Shahrur, H. (2008). Relationship-specific investments and earnings management: Evidence on corporate suppliers and customers.The Accounting Review,83(4), 1041-1081.
  • Ravenscraft, D. J., & Scherer, F. M. (1987). Life after takeover.The Journal of Industrial Economics, 147-156
  • Schreiner, A., & Spremann, K. (2007). Multiples and their valuation accuracy in European equity markets.Available at SSRN 957352
  • Sehgal, S., & Pandey, A. (2010). Equity valuation using price multiples: Evidence from India.Asian Academy of Management Journal of Accounting and Finance,6(1), 89-108
  • Shah, P., & Arora, P. (2014). M&A Announcements and Their Effect on Return to Shareholders: An Event Study. Accounting and Fianance Research, 21
  • Shleifer, A., & Vishny, R. W. (2003). Stock market driven acquisitions.Journal of financial Economics,70(3), 295-311.
  • Tirole, J. (1985). Asset bubbles and overlapping generations.Econometrica: Journal of the Econometric Society, 1499-1528
  • Tran, T. B. N. (2017). Speculative bubbles in emerging stock markets and macroeconomic factors: A new empirical evidence for Asia and Latin America.Research in International Business and Finance,42, 454-467
  • Vander Vennet, R. (1996). The effect of mergers and acquisitions on the efficiency and profitability of EC credit institutions.Journal of Banking & Finance,20(9), 1531-1558.
  • Yang, Q. (2006).Stock bubbles: The theory and estimation (Doctoral dissertation, Brunel University Brunel Business School Ph.D.Theses)

References

  • Aharon, D. Y., Gavious, I., & Yosef, R. (2010). Stock market bubble effects on mergers and acquisitions.The Quarterly Review of Economics and Finance,50(4), 456-470
  • Ahmed, A. (1998).Stock Market Interlinkages in Emerging Markets.Pakistan Institute of Development Economics.(No. 1998: 159).
  • Asker, J., Farre-Mensa, J., & Ljungqvist, A. (2011). Does the stock market distort investment incentives.Unpublished working paper, New York University.
  • Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: comparative loss recognition timeliness.Journal of accounting and economics,39(1), 83-128.
  • Basu, S. (1977). Investment performance of common stocks in relation to their price-earnings ratios: A test of the efficient market hypothesis.The journal of Finance,32(3), 663-682
  • Berkovitch, E., & Narayanan, M. P. (1993). Motives for takeovers: An empirical investigation.Journal of Financial and Quantitative analysis,28(3), 347-362
  • Bhattacharya, N., Demers, E., &Joos, P. (2010). The relevance of accounting information in a stock market bubble: evidence from internet IPOs.Journal of Business Finance & Accounting,37(3-4), 291-321
  • Bhojraj, S., & Lee, C. (2002). Who is my peer? A valuation-based approach to the selection of comparable firms.Journal of accounting research,40(2), 407-439
  • Bohl, M. T. (2003). Periodically collapsing bubbles in the US stock market? International Review of Economics and Finance, 12, 385-397
  • Brooks, C., & Katsaris, A. (2003). Rational speculative bubbles: An empirical investigation of the London Stock Exchange.Bulletin of Economic Research, 55, 319-346
  • Brush, T. H. (1996). Predicted change in operational synergy and post-acquisition performance of acquired businesses.Strategic Management Journal,17(1), 1-24.
  • Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses.Journal of accounting and economics,24(1), 99-126
  • Chang, T., Gil-Alana, L., Aye, G. C., Gupta, R., & Ranjbar, O. (2016). Testing for bubbles in the BRICS stock markets.Journal of Economic Studies,43(4), 646-660.
  • Chatterjee, S., & Lubatkin, M. (1990). Corporate mergers, stockholder diversification, and changes in systematic risk.StrategicManagement Journal,11(4), 255-268.
  • Chen, J. (1999). When the bubble is going to burst.International Journal of Theoretical and Applied Finance,2(03), 285-292
  • Chowdhury, A., Mollah, S., & Al Farooque, O. (2018). Insider-trading, discretionary accruals and information asymmetry.The British Accounting Review
  • Collins, D. W., Maydew, E. L., & Weiss, I. S. (1997). Changes in the value-relevance of earnings and book values over the past forty years.Journal of accounting and economics,24(1), 39-67
  • Conn, R. L., Cosh, A., Guest, P. M., & Hughes, A. (2005). The impact on UK acquirers of domestic, cross-border, public and private acquisitions.Journal of Business Finance & Accounting,32(5-6), 815-870
  • Costa, C. T., da Silva, W. V., de Almeida, L. B.,& da Veiga, C. P. (2017). Empirical evidence of the existence of speculative bubbles in the prices of stocks traded on the São Paulo Stock Exchange.Contaduría y Administración,62(4), 1317-1334
  • Cuñado, J., Gil-Alana, L. A., & Gracia, F. P. D. (2007). Testing for stock market bubbles using nonlinear models and fractional integration.Applied Financial Economics,17(16), 1313-1321
  • Dargenidou, C., Tonks, I., & Tsoligkas, F. (2018). Insider trading and the post-earnings announcement drift.Journal of Business Finance & Accounting,45(3-4), 482-508
  • De Franco, G., & Jin, J. (2008). The private company discount and earnings quality.한국회계학회기타자료집,2008(3), 54-104
  • Degiannakis, S., Giannopoulos, G., Ibrahim, S., & Rozic, I. (2017). Earnings management to avoid losses and earnings declines in Croatia.
  • Elnathan, D., Gavious, I., & Hauser, S. (2009). On the added value of firm valuation by financial experts.International Journal of Business and Management,4(3), 70-85
  • Elsevier.K BRUNNERMEIER, M. A. R. K. U. S., &Nagel, S. (2004). Hedge funds and the technology bubble.The Journal of Finance,59(5), 2013-2040.
  • Fama, E. F. (1965). The behavior of stock-market prices.The journal of Business,38(1), 34-105
  • Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The Adjustment of Stock Prices to New Information. International Economic Review, 10, 1-21
  • Felo, A. J., Kim, J. W., & Lim, J. H. (2018). Can XBRL detailed tagging of footnotes improve financial analysts' information environment?.International Journal of Accounting Information Systems,28, 45-58.
  • Ferreira, J. E. de A. (2009). Periodically collapsing rational bubbles in exchange rates: A Markov-switching analysis fora sample of industrialized markets. Studies in Economics, 1-32
  • Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance?.Journal of accounting Research,37(2), 319-352
  • Francis, J., LaFond, R., Olsson, P., & Schipper, K. (2005). The market pricing of accruals quality.Journal of accounting and economics,39(2), 295-327
  • Gilchrist, S., Himmelberg, C. P., & Huberman, G. (2005). Do stock price bubbles influence corporate investment?.Journal of Monetary Economics,52(4), 805-827
  • Hansen, R. G. (1987). A theory for the choice of exchange medium in mergers and acquisitions.Journal of business,75-95.
  • Hirshleifer, D. (2001). Investor psychology and asset pricing. Journal of Finance,56, 1533-1597
  • Hoppit, J. (2002). The Myths of the South Sea Bubble.Transactions of the Royal Historical Society,12, 141-165
  • Huddart, S., & Louis, H. (2007). Stock returns, earnings management, and insider selling during the 1990s stock market bubble.Unpublished working paper. Pennsylvania State University
  • Huddart, S., Ke, B., & Shi, C. (2007). Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings.Journal of Accounting and Economics,43(1), 3-36.
  • Jiang, Z. Q., Zhou, W. X., Sornette, D., Woodard, R., Bastiaensen, K., & Cauwels, P. (2010). Bubble diagnosis and prediction of the 2005-2007 and 2008-2009 Chinese stock market bubbles.Journal of economic behavior & organization,74(3), 149-162
  • Kindleberger, C. P. (1978): Manias, Panics, and Crashes: A History of Financial Crises. Basic Books
  • Koeplin, J., Sarin, A., & Shapiro, A. C. (2000). The private company discount.Journal of Applied Corporate Finance,12(4), 94-101.
  • Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary aaccrual measures.Journal of accounting and economics,39(1), 163-197
  • Lakonishok, J., Shleifer, A., & Vishny, R. W. (1992). The impact of institutional trading on stock prices.Journal of financial economics,32(1), 23-43.
  • Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them.Journal of Accounting research,37(2), 353-385
  • Lie, E., & Lie, H. J. (2002). Multiples used to estimate corporate value.Financial Analysts Journal,58(2), 44-54
  • Liu, J., Nissim, D., & Thomas, J. (2002). Equity valuation using multiples.Journal of Accounting Research,40(1), 135-172.
  • Ljungqvist, A., & Wilhelm, W. J. (2003). IPO pricing in the dot-com bubble.The Journal of Finance,58(2), 723-752.
  • Miller, E. M. (1977).Risk, Uncertainty, and Divergence of Opinion,Journal of Finance, 32(4), 1151-1168
  • Nel, S., Bruwer, W., & le Roux, N. (2014). An emerging market perspective on peer group selection based on valuation fundamentals.Applied Financial Economics,24(9), 621-637
  • Officer, M. S. (2007). The price of corporate liquidity: Acquisition discounts for unlisted targets.Journal of Financial Economics,83(3), 571-598
  • Ohlson, J. A. (1995). Earnings, book values, and dividends in security valuation. Contemporary Accounting.
  • Omran, M. F. (2003). Equity valuation using multiples in the emergingmarket of the United Arab Emirates.Review of Middle East Economics and Finance,1(3), 267-283
  • Orlitzky, M. (2013). Corporate social responsibility, noise, and stock market volatility.The Academy of Management Perspectives,27(3), 238-254.
  • Porter, D. P., & Smith, V. L. (2003). Stock market bubbles in the laboratory.The Journal of Behavioral Finance,4(1), 7-20
  • Pratt, S. P., & Pratt. (2001).Business valuation discounts and premiums. New York, NY: Wiley.
  • Raman, K., & Shahrur, H. (2008). Relationship-specific investments and earnings management: Evidence on corporate suppliers and customers.The Accounting Review,83(4), 1041-1081.
  • Ravenscraft, D. J., & Scherer, F. M. (1987). Life after takeover.The Journal of Industrial Economics, 147-156
  • Schreiner, A., & Spremann, K. (2007). Multiples and their valuation accuracy in European equity markets.Available at SSRN 957352
  • Sehgal, S., & Pandey, A. (2010). Equity valuation using price multiples: Evidence from India.Asian Academy of Management Journal of Accounting and Finance,6(1), 89-108
  • Shah, P., & Arora, P. (2014). M&A Announcements and Their Effect on Return to Shareholders: An Event Study. Accounting and Fianance Research, 21
  • Shleifer, A., & Vishny, R. W. (2003). Stock market driven acquisitions.Journal of financial Economics,70(3), 295-311.
  • Tirole, J. (1985). Asset bubbles and overlapping generations.Econometrica: Journal of the Econometric Society, 1499-1528
  • Tran, T. B. N. (2017). Speculative bubbles in emerging stock markets and macroeconomic factors: A new empirical evidence for Asia and Latin America.Research in International Business and Finance,42, 454-467
  • Vander Vennet, R. (1996). The effect of mergers and acquisitions on the efficiency and profitability of EC credit institutions.Journal of Banking & Finance,20(9), 1531-1558.
  • Yang, Q. (2006).Stock bubbles: The theory and estimation (Doctoral dissertation, Brunel University Brunel Business School Ph.D.Theses)

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