Title

Abnormal returns of Japanese acquisition bidders-impact of pro-M&A legislation in the 1990s

Document Type

Article

Date of Original Version

6-1-2006

Abstract

This paper examines the market's reaction to news of corporate mergers and acquisitions (M&A) by Japanese bidders during the 1990s. Domestic versus global bids and pro-M&A legislation are considered as determinants of bidders' abnormal returns. The results show that bidders for domestic targets earn significant abnormal returns after the institutions of pro-M&A legislation in Japan. These findings help determine gains from trading strategies for M&A deals in Japan, and provide insight into the current M&A environment in Japan as shaped by pro-M&A legislation. © 2005 Elsevier B.V. All rights reserved.

Publication Title

Pacific Basin Finance Journal

Volume

14

Issue

3

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