One study that reviewed 40 empirical merger and acquisition studies in the finance literature concluded that acquisitions, on average, increased the market value of bidding firms by about 25 percent and left the market value of the target firms unchanged.

Question

Quizplus · Accepted Answer

The study likely concluded that acquisitions increase the market value of target firms, not bidding firms, as target firms typically receive a premium in acquisitions.

One Study That Reviewed 40 Empirical Merger and Acquisition Studies