Acquiring private companies boosts wealth for Australian firms.
The article investigates how Australian companies perform after acquiring other companies. They looked at acquisitions of public, private, and subsidiary companies. The researchers studied how the stock market reacted to these acquisitions and how the companies performed in the long run. They found that bidders for private and subsidiary companies earned higher returns than bidders for public companies. Also, acquisitions of private companies during the Global Financial Crisis had a positive impact on the acquiring companies' wealth.