Access the full text.
Sign up today, get DeepDyve free for 14 days.
R. Powell (2001)
Takeover Prediction and Portfolio Performance: A NoteJournal of Business Finance & Accounting, 28
The American Economic Review, 76
Tyler Shumway (1999)
Forecasting Bankruptcy More Accurately: A Simple Hazard ModelFinancial Accounting
Richard Walter (1994)
The Usefulness of Current Cost Information for Identifying Takeover Targets and Earning Above-Average Stock ReturnsJournal of Accounting, Auditing & Finance, 9
Journal of Empirical Finance, 17
Xiaogang Bi, A. Gregory (2009)
Stock Market Driven Acquisitions versus the Q Theory of Takeovers - The UK EvidenceEconometrics: Applied Econometrics & Modeling eJournal
R. Ball, A. Singh (1975)
Take-Overs: Their Relevance to the Stock Market and the Theory of the Firm.Journal of the American Statistical Association, 70
S. Zanakis, C. Zopounidis (1997)
Prediction of Greek company takeovers via multivariate analysis of financial ratiosJournal of the Operational Research Society, 48
E. Altman (1968)
THE PREDICTION OF CORPORATE BANKRUPTCY: A DISCRIMINANT ANALYSIS*Journal of Finance, 23
V. Agarwal, R. Taffler (2007)
Twenty‐five years of the Taffler z‐score model: Does it really have predictive ability?Accounting and Business Research, 37
P. Barnes (2000)
The identification of U.K. takeover targets using published historical cost accounting data Some empirical evidence comparing logit with linear discriminant analysis and raw financial ratios with industry-relative ratiosInternational Review of Financial Analysis, 9
E. Altman (1968)
FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCYJournal of Finance, 23
M. Jensen, Richard Ruback (1983)
The market for corporate controlJournal of Financial Economics, 11
(1979)
USA Barnes 1990 1986-1987 UK Bartley and Boardman 1990 1975-1981 USA Ambrose and Megginson
K. Palepu (1986)
Predicting takeover targets: A methodological and empirical analysisJournal of Accounting and Economics, 8
Joel Hasbrouck (1985)
The characteristics of takeover targets and other measuresJournal of Banking and Finance, 9
James Ohlson (1980)
FINANCIAL RATIOS AND THE PROBABILISTIC PREDICTION OF BANKRUPTCYJournal of Accounting Research, 18
J. Franks, Robert Harris (1989)
Shareholder wealth effects of corporate takeovers : The U.K. experience 1955-1985Journal of Financial Economics, 23
J.Kimball Dietrich, E. Sorensen (1984)
An application of logit analysis to prediction of merger targetsJournal of Business Research, 12
The Journal of Finance, 57
Richard Ruback (2015)
An Overview of Takeover Defenses
International Journal of Banking, Accounting and Finance, 1
R. Taussig, Samuel Hayes (1968)
Cash Take-Overs and Accounting Valuations
The Journal of Finance, 55
Georgios Ouzounis, Chrysovalantis Gaganis, C. Zopounidis (2008)
Prediction of Acquisitions and Portfolio ReturnsFrontiers in Finance & Economics
P. Kumar, V. Ravi (2007)
Bankruptcy prediction in banks and firms via statistical and intelligent techniques - A reviewEur. J. Oper. Res., 180
Zong-yu Xu (2003)
On Event Approach to Basic Accounting Theory
V. Agarwal, R. Taffler (2006)
Comparing the Performance of Market-Based and Accounting-Based Bankruptcy Prediction ModelsCapital Markets: Asset Pricing & Valuation
Gregor Andrade, Mark Mitchell, Erik Stafford (2001)
New Evidence and Perspectives on MergersIO: Regulation
E. Altman, R. Haldeman, P. Narayanan (1977)
ZETATM analysis A new model to identify bankruptcy risk of corporationsJournal of Banking and Finance, 1
Journal of Financial Economics, 70
H. Alaka, Lukumon Oyedele, H. Owolabi, Prof Kumar, Saheed Ajayi, Olúgbénga Akinadé, Muhammad Bilal (2018)
Systematic review of bankruptcy prediction models: Towards a framework for tool selectionExpert Syst. Appl., 94
Christian Tuch, N. O’Sullivan (2007)
The Impact of Acquisitions on Firm Performance: A Review of the EvidenceERN: Governance & Ownership (Topic)
(1990)
Greece Zanakis and Zopounidis
R. Bruner (2004)
Does M&A Pay? A Survey of Evidence for the Decision-Maker
Mark Klock, S. Mansi, W. Maxwell (2004)
Does Corporate Governance Matter to Bondholders?Journal of Financial and Quantitative Analysis, 40
G. Schwert (1999)
Hostility in Takeovers: In the Eyes of the Beholder?Corporate Law: Corporate & Securities Law eJournal
Journal of Banking and Finance, 36
D. Stevens (2009)
Journal of Financial and Quantitative Analysis March 1973 FINANCIAL CHARACTERISTICS OF MERGED FIRMS: A MULTIVARIATE ANALYSIS
The Journal of Business, 74
Ying Wang, Henry Lahr (2017)
Takeover Law to Protect Shareholders: Increasing Efficiency or Merely Redistributing Gains?LSN: Mergers (Topic)
Toni Whited, Guojun Wu (2005)
Financial Constraints RiskSPGMI: Compustat Fundamentals (Topic)
Ronald Masulis, Cong Wang, Feixue Xie (2007)
Corporate Governance and Acquirer ReturnsLSN: Empirical Studies (Topic)
R. Powell (1997)
Modelling Takeover LikelihoodJournal of Business Finance & Accounting, 24
R. Kaplan, J. Dietrich (1982)
Empirical Analysis of the Commercial Loan Classification Decision
Abongeh Tunyi, C. Ntim, J. Danbolt (2019)
Decoupling Management Inefficiency: Myopia, Hyperopia and Takeover LikelihoodCorporate Finance: Governance
D. Hambrick, Albert Cannella (1993)
Relative Standing: A Framework for Understanding Departures of Acquired ExecutivesAcademy of Management Journal, 36
Arthur Keown, J. Pinkerton (1981)
Merger Announcements and Insider Trading Activity: An Empirical InvestigationJournal of Finance, 36
The Journal of Financial and Quantitative Analysis, 8
Nola Buhr (1997)
Accounting, a Multiparadigmatic ScienceThe Accounting historians journal, 24
Jay Hartzell, E. Ofek, D. Yermack (2001)
What S in it for Me? Ceos Whose Firms are AcquiredNew York University Stern School of Business Research Paper Series
Fotios Pasiouras, S. Tanna (2009)
The Prediction of Bank Acquisition Targets with Discriminant and Logit Analyses: Methodological Issues and Empirical EvidenceERN: Model Evaluation & Selection (Topic)
(2001)
Project financed by the European Commission, DG Research
Jordan Voss (2012)
Why do Firms Repurchase Stock, 14
Deepak Datta, G. Pinches, V. Narayanan (1992)
Factors influencing wealth creation from mergers and acquisitions: A meta‐analysisSouthern Medical Journal, 13
James Ang, Yingmei Cheng (2003)
Direct Evidence on the Market-Driven Acquisitions TheoryEuropean Financial Management Association Meetings (EFMA) (Archive)
The Journal of Finance, 62
(1969)
Is your company a take-over target
Journal of Economic Perspectives, 15
M. Hammersley (2001)
On 'systematic' reviews of research literatures: A 'narrative' response to Evans & BenefieldBritish Educational Research Journal, 27
R. Taffler (1984)
Empirical models for the monitoring of UK corporationsJournal of Banking and Finance, 8
R. Watts, J. Zimmerman (2006)
Towards A Positive Theory of the Determination of Accounting Standards
Journal of Corporate Finance, 48
M. Aziz, Humayon Dar (2006)
Predicting corporate bankruptcy: where we stand?Corporate Governance, 6
Albert Cannella, D. Hambrick (1993)
Effects of executive departures on the performance of acquired firmsSouthern Medical Journal, 14
A. Belkaoui (1978)
FINANCIAL RATIOS AS PREDICTORS OF CANADIAN TAKEOVERSJournal of Business Finance & Accounting, 5
G. Pinches, Kent Mingo (1973)
A MULTIVARIATE ANALYSIS OF INDUSTRIAL BOND RATINGSJournal of Finance, 28
J. Graham, M. Lemmon, Jack Wolf (2001)
Does Corporate Diversification Destroy Value?Corporate Law: Finance & Corporate Governance Law eJournal
B. Rodrigues, Maxwell Stevenson (2013)
Takeover prediction using forecast combinationsInternational Journal of Forecasting, 29
R. Powell, A. Yawson (2007)
Are Corporate Restructuring Events Driven By Common Factors? Implications for Takeover PredictionERN: Deregulation/Restructuring of Public Sector Firms (Topic)
(1972)
Mergers and takeovers: the financial characteristics of companies involved
Journal of Business Finance and Accounting, 43
Jon Bartley, Calvin Boardman (1990)
THE RELEVANCE OF INFLATION ADJUSTED ACCOUNTING DATA TO THE PREDICTION OF CORPORATE TAKEOVERSJournal of Business Finance & Accounting, 17
Abongeh Tunyi, C. Ntim (2016)
Location Advantages, Governance Quality, Stock Market Development and Firm Characteristics as Antecedents of African M&AsCorporate Finance: Governance
Fotios Pasiouras, S. Tanna, C. Zopounidis (2007)
The identification of acquisition targets in the EU banking industry: An application of multicriteria approachesInternational Review of Financial Analysis, 16
Richard Ruback, M. Jensen (2002)
The Market for Corporate Control: The Scientific EvidenceCorporate Finance: Governance
S. Kaplan, Luigi Zingales (1997)
Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?Quarterly Journal of Economics, 112
M. Cornett, Başak Tanyeri, H. Tehranian (2010)
The Effect of Merger Anticipation on Bidder and Target Firm Announcement Period ReturnsS&P Global Market Intelligence Research Paper Series
Gurvinder Brar, Daniel Giamouridis, Manolis Liodakis (2009)
Predicting European Takeover TargetsIO: Firm Structure
(2013)
Morgan Stanley world target equity index (Eur, pr)
P. Barnes (1998)
Can Takeover Targets be Identified by Statistical Techniques?: Some UK EvidenceThe Statistician, 47
Xiaogang Bi, A. Gregory (2011)
Stock Market Driven Acquisitions Versus the Q Theory of Takeovers: The UK EvidenceERN: Governance & Ownership (Topic)
J. Naman, D. Slevin (1993)
Entrepreneurship and the concept of fit: A model and empirical testsStrategic Management Journal, 14
P. Barnes (1999)
Predicting UK Takeover Targets: Some Methodological Issues and an Empirical StudyReview of Quantitative Finance and Accounting, 12
D. Kuehn (1975)
Takeovers and the Theory of the Firm: An Empirical Analysis for the United Kingdom 1957–1969
Journal of Banking and Finance, 32
R. Słowiński, C. Zopounidis, A. Dimitras (1997)
Prediction of company acquisition in Greece by means of the rough set approachEur. J. Oper. Res., 100
(2011)
Signal processing; targeting takeovers
Review of Financial Studies, 19
P. Barnes (1990)
THE PREDICTION OF TAKEOVER TARGETS IN THE U.K. BY MEANS OF MULTIPLE DISCRIMINANT ANALYSISJournal of Business Finance & Accounting, 17
Hassan Espahbodi, Pouran Espahbodi (2003)
Binary choice models and corporate takeoverJournal of Banking and Finance, 27
R. Libby (1975)
Accounting Ratios and the Prediction of Failure: Some Behavioral EvidenceJournal of Accounting Research, 13
Michael Jensen (1986)
Agency Cost of Free Cash Flow, Corporate Finance, and TakeoversIndustrial Organization & Regulation eJournal
R. Watts, J. Zimmerman (2006)
Positive Accounting Theory: A Ten Year Perspective
Athanasios Tsagkanos, Antonios Georgopoulos, C. Siriopoulos (2007)
Predicting Greek mergers and acquisitions: a new approachInternational Journal of Financial Services Management, 2
B. Ambrose, W. Megginson (1992)
The Role of Asset Structure, Ownership Structure, and Takeover Defenses in Determining Acquisition LikelihoodJournal of Financial and Quantitative Analysis, 27
Review of Financial Studies, 22
B. Green, Claire Johnson, A. Adams (2006)
Writing narrative literature reviews for peer-reviewed journals: secrets of the trade.Journal of chiropractic medicine, 5 3
Soumendra De, J. Jindra (2012)
Why Newly Listed Firms Become Acquisition TargetsERPN: Exits (Topic)
Chris Brooks, Zhong Chen, Yeqin Zeng (2017)
Institutional Cross-Ownership and Corporate Strategy: The Case of Mergers and AcquisitionsCorporate Finance: Governance
Abongeh Tunyi (2020)
Revisiting Acquirer Returns: Evidence From Unanticipated DealsERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)
James Wansley, W. Lane, H. Yang (1983)
Abnormal Returns to Acquired Firms by Type of Acquisition and Method of PaymentFinancial Management, 12
Abongeh Tunyi (2019)
Firm size, market conditions and takeover likelihoodReview of Accounting and Finance
Ming Dong, D. Hirshleifer, Scott Richardson, S. Teoh (2006)
Does Investor Misvaluation Drive the Takeover MarketJournal of Finance, 61
European Financial Management, 10
R. Powell (2004)
Takeover Prediction Models and Portfolio Strategies: A Multinomial ApproachCapital Markets: Asset Pricing & Valuation
U. Rege (1984)
ACCOUNTING RATIOS TO LOCATE TAKE‐OVER TARGETSJournal of Business Finance & Accounting, 11
Journal of Financial Economics, 11
J. Danbolt, Antonios Siganos, Abongeh Tunyi (2016)
Abnormal Returns from Takeover Prediction Modelling: Challenges and Suggested Investment StrategiesCorporate Finance: Governance
R. Morck, Andrei Shleifer, Robert Vishny (1988)
Management Ownership and Market Valuation: An Empirical AnalysisJournal of Financial Economics, 20
Southern Journal of Business, 9
P. Holl, Dimitris Kyriazis (1997)
WEALTH CREATION AND BID RESISTANCE IN U.K. TAKEOVER BIDSStrategic Management Journal, 18
Journal of Business Finance and Accounting, 44
J. Jaffe, J. Jindra, David Pedersen, Torben Voetmann (2015)
Returns to acquirers of public and subsidiary targetsJournal of Corporate Finance, 31
Jon Bartley, Calvin Boardman (1986)
Replacement-cost-adjusted valuation ratio as a discriminator among takeover target and nontarget firmsJournal of Economics and Business, 38
H. Manne (1965)
Mergers and the Market for Corporate ControlJournal of Political Economy, 73
Karan Bhanot, S. Mansi, John Wald (2009)
Takeover Risk and the Correlation Between Stocks and BondsEmpirical Asset Pricing II
(2008)
Morgan stanley world target equity index
M. Cremers, Vinay Nair, Kose John (2007)
Takeovers and the Cross-Section of ReturnsCapital Markets: Asset Pricing & Valuation eJournal
J. Danbolt (1995)
An Analysis of Gains and Losses to Shareholders of Foreign Bidding Companies Engaged in Cross-Border Acquisitions Into the United Kingdom - 1986-1991European Journal of Finance, 1
Stewart Jones, D. Johnstone, Roy Wilson (2017)
Predicting Corporate Bankruptcy: An Evaluation of Alternative Statistical FrameworksS&P Global Market Intelligence Research Paper Series
Journal of Financial Research, 29
This paper aims to review prior studies and presents a synthesis of the takeover prediction literature spanning the period 1968–2018.Design/methodology/approachThe paper adopts a narrative review approach. It explores prior studies on takeover target prediction from a historical perspective, focusing on the evolution and development of the literature over the 50-year period.FindingsFrom a historical development perspective, prior studies in the area can be partitioned into four distinct eras. Studies in the first era (1968–1985) mainly established that takeover targets share common characteristics which can be captured with financial ratios. Studies in the second era (1986–2002) developed and extended formal target prediction hypotheses. These studies concluded that it was impossible to build a successful investment strategy around takeover target prediction. Studies in the third era (2003–2009) explored similar questions using alternative modelling techniques but arrive at similar results – targets can be predicted with limited accuracy and target prediction is unlikely to lead to abnormal returns. Studies in the fourth era (2010–2018) explore implications of M&A predictability on share valuation, governance and bond prices (amongst others), but most importantly, provide some evidence that takeover prediction can lead to abnormal returns when combined with appropriate screening strategies.Originality/valueThis presents the first in-depth review of the literature on takeover target prediction. It highlights the development of the literature over four distinct eras and identifies several limitations, research gaps and opportunities for future research. Given the recent decline in the literature (i.e. fourth era), this study may stimulate new research in the area.
Qualitative Research in Financial Markets – Emerald Publishing
Published: Jul 27, 2021
Keywords: Literature review; Narrative overview; M&A targets; Target characteristics; Takeover prediction; Abnormal returns
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.