Does the Toehold Influence the Success of an M&A Transaction?
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 1
Abstract
This study analyses whether the toehold (the target shares owned by the acquirer prior to launching a takeover bid) have a decisive role in the success of mergers and acquisition (M&A) transaction. It is well known that in any bidding process having a toehold is a significant competitive advantage over the rival bidders. This study is based on the takeover bids occurred on the Romanian capital market from 2000 to 2012. Our database includes both successful and unsuccessful transaction in terms of the change of control and companies operating in every industry. Other results suggest that the toehold can play an important role in a successful M&A transaction, but also that the toehold is influenced by other factors and by the industry of the acquired company.
Authors and Affiliations
Radu Ciobanu
Keywords
Related Articles
- EP ID EP141704
- DOI 10.6007/IJARAFMS/v4-i1/593
- Views 93
- Downloads 0
Pakistan's Trade Complementarities with OECD Countries
This paper has made an empirical analysis to ascertain complementarities of Pakistan with OECD countries. The objective of the study is to check how well export of Pakistan matches with the import of OECD countries in or...
The Complex Relationship between Corporate Management, Stakeholders and Accounting
The Examination of Relationship between Intellectual Capital and Financial Performance According to the Modulating Role of Competitive Advantage
Intellectual capital is a new matter that theoretically is suggested in the few recent years. This unobservable source as one of the companies’ increasing sources and a key capital in the development of entrepreneurship...
Strategic Planning, Issues, Prospects and the Future of the Malaysian Herbal Industry
The importance of Strategic planning to business organizations either big or small has been emphasized in strategic management literature. Not many researches were conducted to study the applicability of strategic planni...
The Impact of Intellectual Capital on the Financial Performance of Listed Companies in Tehran Stock Exchange
In the age of knowledge-based economy, an organization uses two distinguished resources for value creation and profit making: material or tangible resources and intellectual or invisible resources. In fact, it is claimed...