Bidders earn nothing in acquisition deal”– does it apply in an emerging market?
This paper investigates whether the convention about wealth distribution in an M&A deal holds true for Acquirers of TMT-sector companies in Russia. The convention can be formulated as: In an M&A deal, bidders earn nothing, while targets enjoy wealth increase on average. The wealth effect on acquirers is measured by means of event study approach. The central tendencies of abnormal return an