Skip to main content

Success for ICMA Centre Research

The research, co-authored by George Alexandridis from the ICMA Centre documents that Mergers and Acquisitions (M&As) can create value for shareholders of acquiring firms beyond the most competitive M&A markets, such as the UK and US, where existing research has so far focused. The study establishes a link between the degree of competition in the market for corporate control and the premia paid in M&As around the world and gains to acquiring firm shareholders and therefore significantly contributes to existing knowledge in the area of Corporate Finance.

The research received the ?Best paper award in international finance' for 2009 at the Southwestern Finance Association conference in the US and has been presented at the 2010 Midwest Finance Association conference, the 2009 Southern Finance Association conference, the 2008 European Financial Management Association conference and the 2008 European Finance Association conference.

Dr George Alexandridis, Lecturer in Finance at the ICMA Centre said:

"The evidence we find deviates from conventional knowledge and is particularly compelling. In the past, many other studies, including some of our own, document that M&A deals involving listed targets destroy value for shareholders of acquiring firms. This research shows that this is likely to occur due to the more intense competition for listed targets within the largest M&A markets where we have been so far focused. We establish that the premium paid in acquisitions around the world increases with the degree of competition in the market for corporate control and that the gains that shareholders experience decrease with competition. As a result, M&As beyond the most competitive markets involve on average lower premia and can be more promising for acquiring firm shareholders."

The research paper is co-authored with Dr Dimitris Petmezas from Surrey School of Management and Prof Nickolaos Travlos, the Kitty Kiriakopoulos Chair in Finance and Dean of ALBA Business School.

Published 4 March 2010

You might also like

The ICMA Centre Leads the Way as Interest in Islamic Finance Grows

9 November 2009
A recent article published in the Wall Street Journal highlights the growing interest in Islamic Finance. The sector is now seen as a thriving industry, with many keen to study the specialised area. Business schools are now tailoring their courses to reflect these needs and structuring degrees to train students in investments that comply with Quranic Law.

Talk on “Steve Jobs’ last gift and yoga meditation”

1 November 2013
What does yoga meditation have to do with the late Steve Jobs, former CEO of Apple and one of the most creative and innovative entrepreneurs of our time? Before his passing in 2011 he made arrangements that all those attending his memorial service at Stanford University should receive a copy of “Autobiography of a Yogi” by Paramahansa Yogananda, a spiritual classic which he said he had read once a year since he had first become acquainted with the book. “There has been nothing before, written in English or in any other European language, like this presentation of Yoga” writes Columbia University Press, while the New York Times defines it “A rare account”.

Industry Insights - Working in FinTech with Nadia Edwards-Dashti

24 February 2020
Nadia Edwards-Dashti (Founder and MD at the Harrington Starr Group, Winner - Investing in Talent 2019 Awards - Most Inspirational Rec Leader) was our ICMA Centre guest speaker on Wednesday 19 February.
Industry Insights reviews