
Event analysis of the impact of mergers and acquisitions on the financial performance of the U.S. forest products industry
The U.S. forest products industry has witnessed an unprecedented period of mergers and acquisitions (M&As) in recent years. In this study, the impact of 70 M&As from 1990 to 2004 on the financial performance of 85 publicly traded forest firms was evaluated. The examination of abnormal returns revealed that the equity market had responded to these M&As. The average cumulative abnormal returns for all the firms as a group ranged from 1.66% for the 15-day event window to 3.03% for the 3-day event window. From the cross-sectional regressions, the position as a target firm and the relative transaction size explained a large portion of the variations of the individual firms' cumulative abnormal returns. Finally, risk analyses through the Capital Asset Pricing Model showed that the risk for some of the selected 14 acquiring firms had changed after the M&As. © 2007 Elsevier B.V. All rights reserved.
Duke Scholars
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Related Subject Headings
- Forestry
- 4104 Environmental management
- 3801 Applied economics
- 3007 Forestry sciences
- 1605 Policy and Administration
- 1402 Applied Economics
- 0705 Forestry Sciences
Citation

Published In
DOI
ISSN
Publication Date
Volume
Issue
Start / End Page
Related Subject Headings
- Forestry
- 4104 Environmental management
- 3801 Applied economics
- 3007 Forestry sciences
- 1605 Policy and Administration
- 1402 Applied Economics
- 0705 Forestry Sciences