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Data Description

 The initial acquisition sample is retrieved from the Securities Data Company

(SDC) and Mergers & Acquisitions (M&A) database during !!"#$%%$ To

narro' do'n the sample in order to achieve accurate results further

restrictions are imposed irstly data is generated from *harton +esearch

Data Services (*+DS) of ,niversity of -ennsylvania using the Centre of 

+esearch in Security -rices (C+S-) and C.M-,STAT This information is used

to generate the control variables 'hich are further used in the regression

analysis This process further reduces the sample for the cross sectional

analysis performed in hypotheses $ and /

urthermore in order to calculate the cumulative abnormal returns and for a

detail analyses of the impact of dual class share structure upon stoc0

returns 1 further require the stoc0 returns of the dual class and the single

class target 2rms 1n order to 3ustify the hypothesis that the dual class 2rms

tend to produce higher cumulative abnormal returns than their equivalent

single class a cross section of all acquisitions made by all the dual class

targets and the equivalent single class targets is used -anel A of Table

reports the summary statistics of the cross4sectional sample The sample

contains /5$ acquisitions announced by 6$ bidding 2rms during the years

!!" to $%%$ 'hose data is available for the regression analysis in Table /

and " During the period of !!" and $%%$ the cumulative abnormal returns

are calculated bet'een a t'o day 'indo' that is the returns t'o days before

the announcement date and t'o days after the announcement date (4$7$)

'hile the announcement date being day 8ero This is done using the mar0et

model estimated 'ith the .rdinary 9east Square (.9S) regression model

urthermore for the estimation of the alpha (:) and beta (;) of the mar0et

model an estimation 'indo' of $<% days is used 'hich ends < days prior to

the announcement date The analyses requires at least "% daily stoc0 returns

in the estimation 'indo' inally follo'ing the 'or0 in previous studies

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(=arford !!!> Schlingemann $%%") the sample only includes the ma3or

transactions as de2ned by the SDC namely Mergers and Acquisitions of 

ma3ority interests Also both the acquirer and the target are required to be

listed on the ?e' @or0 Stoc0 Bchange (?@S) American Stoc0 Bchange

(AM) or ?ational Association of Securities Dealers Automated uotations

(?ASDA) follo'ing the 'or0 of =arford (!!!)

or the analyses of bidder operating performance the sample si8es diEer

from that of the announcement eEects analysis due to the diEering data

requirements speci2ed belo' To analyse the bidder operating performance

'e require the deals to be successfully completed or not More importantly

to analyse the uses of funds after the acquisitions 1 use both the completedand the 'ithdra'n deals and require this data to be available to calculate the

target performance

or the predicting bidder analysis 'e use a panel of C.M-,STAT company4

years that have the available data during the period !6%#$%%6 *e use a

binary variable namely acquisition to Fag a company4year in 'hich the

company announces one or more acquisitions This variable is the dependent

variable in our predicting bidder regression analysis in Table < -anel G of 

 Table $ reports the summary statistics of this panel data All variables are

'insori8ed at the st and !!th percentiles Altogether 'e have /%$/

company4years 'ith the required data There are ""5 bidder company4years

in 'hich a company announces at least one acquisition *e further separate

the panel into years in 'hich a company announces an acquisition or more (a

bidder company4year> acquisitionH ) and those years in 'hich a company

does not announce any acquisition (a non4bidder company year>acquisitionH%)