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- Title
Performance of Acquisition Oriented Canadian Firms.
- Authors
Baesel, Jerome B.; Grant, Dwight
- Abstract
This paper discusses research which investigated the same phenomenon in another legal and institutional environment. Specifically, we have studied the performance of acquisition oriented Canadian firms during the period 1960-75, a period during which many mergers and acquisitions occurred. <BR> Major studies of the U.S. acquisition phenomenon of the 1960's have found that companies engaging in acquisitions outperform the market. This suggests that there are private gains which accrue to the investors of such firms. As we discussed above, it is not, in general, possible to determine that the existence of private gains implies real aggregate economic gains. They may, in fact, be transfers from one group to another. Evidence on this question is very difficult to detect. Nevertheless, the existence of private gains does determine the private merit of firms pursuing acquisition programmes and also bears on the larger public policy issues. <BR> In this study we have examined the risk-adjusted performance of a sample of Canadian firms actively engaged in acquisitions programmes. There appear to be a wide variety of types, horizontal, vertical and diversifying, and of motivations, defensive, diversifying, etc., for the acquisitions.
- Subjects
CANADA; MERGERS &; acquisitions; POLITICAL planning
- Publication
Southern Economic Journal, 1979, Vol 45, Issue 3, p730
- ISSN
0038-4038
- Publication type
Article
- DOI
10.2307/1057473