Empirical evidence regarding merger gains shows that, on average:
A)Target firm shareholders experience a significant gain.
B)Acquiring firm shareholders experience a significant gain, while target firm shareholders gain nothing.
C)Target firm shareholders experience no gain, while acquiring firm shareholders lose.
D)None of the above.

Question

Quizplus · Accepted Answer

Empirical evidence generally shows that target firm shareholders experience significant gains from mergers, often due to the premium paid by the acquiring firm to purchase the target firm's shares.

Empirical Evidence Regarding Merger Gains Shows That, on Average