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Essays on Corporate Transactions - Determinants of Underpricing in Equity Carve-outs and M&A Announcement Returns
Type
doctoral thesis
Date Issued
2021-09-20
Author(s)
Gabler, Julian
Abstract
The cumulative dissertation at hand comprises three empirical research studies. Study 1 The influence of prior issuer-underwriter relationships on underpricing in equity carve-outs is devoted to equity carve-outs, a special type of initial public offering. We argue and observe that the first day stock price development (the so-called underpricing) is significantly influenced by prior interactions between the company conducting the ECO and its main advisor, the lead investment bank. In Study 2 The influence of target CSR performance on acquirer acquisition announcement returns, we examine the influence of exemplary social and ecological corporate social responsibility (CSR) on investor reaction upon the announcement of an acquisition. We hypothesize and find that targeting companies with strong CSR performance is associated with a more favorable investor reaction for an acquirer. In Study 3 The influence of acquirer CSR on investor reaction in cross-border acquisitions by emerging market acquirers we analyze the influence of CSR on investor reaction when emerging market acquirers announce the acquisition of companies from developed countries. We argue albeit cannot empirically observe that acquirers with strong CSR performance are accompanied by a more favorable reaction of their investors due to higher trust in the company and a more positive outlook on their ability to navigate the typically challenging regulatory and political environment surrounding these kinds of cross-border acquisitions.
Abstract (De)
The cumulative dissertation at hand comprises three empirical research studies. Study 1 The influence of prior issuer-underwriter relationships on underpricing in equity carve-outs is devoted to equity carve-outs, a special type of initial public offering. We argue and observe that the first day stock price development (the so-called underpricing) is significantly influenced by prior interactions between the company conducting the ECO and its main advisor, the lead investment bank. In Study 2 The influence of target CSR performance on acquirer acquisition announcement returns, we examine the influence of exemplary social and ecological corporate social responsibility (CSR) on investor reaction upon the announcement of an acquisition. We hypothesize and find that targeting companies with strong CSR performance is associated with a more favorable investor reaction for an acquirer. In Study 3 The influence of acquirer CSR on investor reaction in cross-border acquisitions by emerging market acquirers we analyze the influence of CSR on investor reaction when emerging market acquirers announce the acquisition of companies from developed countries. We argue albeit cannot empirically observe that acquirers with strong CSR performance are accompanied by a more favorable reaction of their investors due to higher trust in the company and a more positive outlook on their ability to navigate the typically challenging regulatory and political environment surrounding these kinds of cross-border acquisitions.
Language
English
Keywords
Going Public
Internationales Management
Mergers and Acquisitions
Strategisches Management
EDIS-5104
M&A
IPO
Corporate Transactions
Corporate Strategy
HSG Classification
not classified
HSG Profile Area
None
Publisher
Universität St. Gallen
Publisher place
St.Gallen
Official URL
Subject(s)
Eprints ID
264357
File(s)