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This study delves into the disparities in average returns to acquirers and targets when assets are transferred between them. Shareholders of target firms typically gain significant abnormal returns, whereas shareholders of acquiring firms experience little to no positive returns, and sometimes even negative returns. Capron & Pistre (2002) and Loughran and Vijh (1997) provide insightful observations in this field.
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Average return to acquirers and targets by transferring assets to each other are different Often return to acquirer is none but shareholders have some amount by holding different period from announcement date Capron & Pistre, 2002 Share holders of target firms gain significant abnormal returns but shareholders of acquiring firm gain little, no or sometimes negative abnormal return from these investments. Loughran and Vijh (1997)
