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The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE
Dissertation (MBA)--University of Pretoria, 2010.
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| Format: | Thesis |
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University of Pretoria
2013
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| _version_ | 1867613612209602560 |
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| access_status_str | Open Access |
| author2 | Pieterse, Thea |
| author_browse | Pieterse, Thea |
| author_facet | Pieterse, Thea |
| collection | Thesis |
| dc_rights_str_mv | © 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. |
| description | Dissertation (MBA)--University of Pretoria, 2010. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/23774 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:38:54.752Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/23774 The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE Pieterse, Thea ichelp@gibs.co.za Chadha, Virat UCTD Information asymmetry Earnout Acquisitions Mergers Human capital Dissertation (MBA)--University of Pretoria, 2010. 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 Gordon Institute of Business Science (GIBS) unrestricted 2013-09-06T15:53:30Z 2011-05-10 2013-09-06T15:53:30Z 2011-04-20 2010 2011-04-04 Dissertation 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 > F11/118/ag http://hdl.handle.net/2263/23774 http://upetd.up.ac.za/thesis/available/etd-04042011-173802/ © 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. application/pdf University of Pretoria |
| spellingShingle | UCTD Information asymmetry Earnout Acquisitions Mergers Human capital The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title | The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title_full | The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title_fullStr | The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title_full_unstemmed | The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title_short | The impact of earnout structure on bidder firm share price in mergers and acquisitions on the JSE |
| title_sort | impact of earnout structure on bidder firm share price in mergers and acquisitions on the jse |
| topic | UCTD Information asymmetry Earnout Acquisitions Mergers Human capital |
| url | http://hdl.handle.net/2263/23774 http://upetd.up.ac.za/thesis/available/etd-04042011-173802/ |