Research results indicate all of the following EXCEPT:
A) immediately after the announcement of a planned acquisition, the stock price of the majority of acquiring firms declines in the majority of cases.
B) shareholders of acquired firms often earn above-average returns from an acquisition.
C) the majority of acquisitions increase long-term value for the acquiring firm.
D) shareholders of acquiring firms typically earn returns from the transaction that are close to zero.

Question

Quizplus · Accepted Answer

Research generally shows that while acquisitions can create value, the majority do not significantly increase long-term value for the acquiring firm.

Research Results Indicate All of the Following EXCEPT