Fig. 1 Cumulative average abnormal returns to target firms' stocks from trading day -126 to +253 relative to the first bid. All NYSE and Amex-listed target firms from 1975-91. Market model parameters used to define abnormal returns are estimated using the CRSP value-weighted portfolio for days -379 to -127. The 1,401 target firms that are successfully taken over are shown with a solid line. The 414 target firms that are not taken over within the next year are shown with a dashed line. The full sample of 1,815 successful or unsuccessful firms is shown with a dotted line.

© Copyright 1996, G. William Schwert
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