Maximizing Shareholder Wealth Through Strategic M&A: The Impact of Target Firm Listing Status and Acquirer Size on Sustainable Business Models in Korean SMEs
This study demonstrates how target listing status and acquirer size influence shareholder wealth, suggesting implications for sustainable business models.
Key Points
Smaller acquirers earn significantly higher announcement-period cumulative abnormal returns, indicating a size effect in M&A outcomes.
Despite higher unadjusted returns for acquisitions of privately held targets, their significance diminishes when controlling for firm fundamentals.
Using an event study and multivariate regressions on 155 M&A announcements provides robust insights into shareholder responses.
The study highlights the importance of firm-specific fundamentals, strategic fit, and integration capacity in M&A decision-making.