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Amporn Soongswang

Shinawatra University, Thailand



This study features the impact of takeovers on both target and bidding firms traded on the Stock Exchange of Thailand (SET). The study investigates a long-window abnormal return, or during a period of twelve months before and after the announcements using several metrics. Their long-term bid period returns were measured by cumulative, buy-and-hold average abnormal returns estimated from the market and market-adjusted models. The three parametric statistic tests: standardized-residual test, standardized cross-sectional test and conventional t-tests were used for significance tests of the means. The results add to the literature on emerging markets and provide a further comparison with developed stock markets. They are consistent when compared within this study, and most past studies using the limited range of research methods, suggesting that a Thai takeover results in significant and positive combined values for the target and bidding firms‟ shareholders.

Key words: takeover, abnormal return, combined values, Thailand

JEL Codes: G14, G34