TY - JOUR AU - Swanstrom, Mark PY - 2006/10/15 Y2 - 2024/03/28 TI - Corporate Governance and The Abnormal Returns To Acquisition Announcements JF - Journal of Business Strategies JA - J Bus Strategies VL - 23 IS - 2 SE - Research Articles DO - 10.54155/jbs.23.2.115-130 UR - https://jbs-ojs-shsu.tdl.org/jbs/article/view/152 SP - 115-130 AB - <p>This paper investigates the relationship between a firm's corporate governance<br>structure and the abnormal returns associated with acquisition announcements.<br>Based on a sample of 294 acquisitions occurring from 1994 through 1998, it is<br>found that acquiring firms have significant two-day abnormal returns of-2.71%.<br>A multiple regression model that includes corporate governance variables has an<br>Adjusted R-squared of 14.2% with board size, the sensitivity of the CEO's wealth<br>to changes in share price, method ofpayment, and acquiring firm size all being<br>significant explanatory variables.</p> ER -