The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE

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dc.contributor.advisor Pieterse, Thea en
dc.contributor.postgraduate Chadha, Virat en
dc.date.accessioned 2013-09-06T15:53:30Z
dc.date.available 2011-05-10 en
dc.date.available 2013-09-06T15:53:30Z
dc.date.created 2011-04-20 en
dc.date.issued 2011-05-10 en
dc.date.submitted 2011-04-04 en
dc.description Dissertation (MBA)--University of Pretoria, 2011. en
dc.description.abstract Earnout as a method of payment in an M&A allows for a number of advantages over the traditional choices of exchange medium, such as cash and stock. This study seeks to validate some of the conclusions drawn by existing literature, in the South African context and add value by investigating two specific attributes, namely the size of the earnout as well as the period over which an earnout may be evaluated; and their impact on the acquirer stock return. The investigation is conducted based on the analysis of event period abnormal gains for the acquirer over the event periods of ±10 days; ±5 days and ±1 day around the announcement of the merger or acquisition.Over the period 2003 – 2009, the data lends significant support to the view that earnout ratio larger than 51% leads to higher abnormal gains than those less than 51% of the total transaction value. Copyright en
dc.description.availability unrestricted en
dc.description.department Gordon Institute of Business Science (GIBS) en
dc.identifier.citation Chadha, V 2010, The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/23774 > en
dc.identifier.other F11/118/ag en
dc.identifier.upetdurl http://upetd.up.ac.za/thesis/available/etd-04042011-173802/ en
dc.identifier.uri http://hdl.handle.net/2263/23774
dc.language.iso en
dc.publisher University of Pretoria en_ZA
dc.rights © 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. en
dc.subject UCTD en_US
dc.subject Information asymmetry en
dc.subject Earnout en
dc.subject Acquisitions en
dc.subject Mergers en
dc.subject Human capital en
dc.title The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE en
dc.type Dissertation en


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