horizontal and vertical takeover and selloff announcements：水平和垂直接管和出售公告.pdfVIP

Corporate Ownership Control / Volume 3, Issue 2, Winter 2005-2006 HORIZONTAL AND VERTICAL TAKEOVER AND SELL-OFF ANNOUNCEMENTS: ABNORMAL RETURNS DIFFER BY INDUSTRY Stephan K.H. Gross*, Hagen Lindstädt** Abstract We begin with the hypothesis that shareholder-wealth effects of corporate transactions differ depending on (a) the specific industry, (b) whether they are horizontal or vertical, and (c) whether they are integrations (takeovers) or disintegrations (partial sell-offs). A standard event study analysis for cumulative abnormal returns based on the market model is conducted for 309 data-points from 227 transaction announcements. We find that abnormal returns indeed do significantly depend on the transaction profile (horizontal vs. vertical and integration vs. disintegration) and industry. One main result is the observation that the capital market shows distinctive preferences for either an integration or disintegration strategy for vertical as well as for horizontal transactions. The specific pattern of this preference differs according to industry. Keywords: Horizontal and Vertical Transactions, Integration and Disintegration, Mergers and Acquisitions, Abnormal Returns, Industry Specific Event Study * Consultant with Booz Allen Hamilton, Germany. **Chair in Management and Organization from University Karlsruhe, Germany, and head of the institute of applied business studies and management there. E-mail: lindstaedt@ibu.uni-karlsruhe.de, url:http://www.ibu.uni-karlsruhe.de 1. Introduction and literature review previous empirical studies look at transactions across multiple industries. If valuation effects vary