Title: The market for corporate control in Greece: a critical assessment of the wealth effects to bidder-companies' shareholders

Authors: Ioannis A. Tampakoudis, Demetres N. Subeniotis, Efpraxia Dalakiouridou

Addresses: Department of Business Administration, University of Macedonia, 156 Egnatias Street, 54006 Thessaloniki, Greece. ' Department of Business Administration, University of Macedonia, 156 Egnatias Street, 54006 Thessaloniki, Greece. ' University of Macedonia, 156 Egnatias Street, 54006 Thessaloniki, Greece

Abstract: Empirical evidence do not appear to robustly support the phenomenon of mergers and acquisitions in Greece, considering the marginally positive Abnormal Returns (ARs) accruing to bidder-companies| shareholders. The returns are not statistically significant, while before and after the announcement day they show a downturn drift. The level of AR for the Greek bidder-companies is in line with those in Europe, while the particular diversifying results in the USA cannot lead to direct comparisons. Mergers and acquisitions do not constitute a business panacea and probably the extensive interest for business consolidation diachronically is accountable to the managers| objectives or the hybris hypothesis.

Keywords: mergers; acquisitions; M&A; event study; abnormal returns; managerial incentives; corporate control; Greece; wealth effects; shareholders; bidder companies.

DOI: 10.1504/IJEPEE.2011.039563

International Journal of Economic Policy in Emerging Economies, 2011 Vol.4 No.2, pp.117 - 139

Available online: 08 Apr 2011 *

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