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dc.contributor.authorLeong, M. F.en
dc.contributor.authorWard, Bert D.en
dc.contributor.authorGan, Christopheren
dc.date.accessioned2009-03-31T22:48:29Z
dc.date.issued1996-09en
dc.identifier.issn1173-0854en
dc.identifier.urihttps://hdl.handle.net/10182/957
dc.description.abstractThe purpose of this paper is to examine the behaviour of the share prices on the acquired bank, Trust Bank New Zealand Limited, involved in a merger proposal. Asquith, Burner and Mullins (1983) have identified a number of different techniques available for this type of study. One technique is based on the examination of variances on an ex-post basis, and is a simple extension of the technique used in event studies to detect changes in mean returns on a security. A second technique is ex-ante in nature and involves the examination of variances implied in call option prices. A possible advantage in using the latter technique is that it provides a variance estimate that is based on investor expectations of the future volatility of returns on the stock. Thus, if merger proposal causes a change in the market’s estimate of the volatility of returns on the stock, then an examination of implied variance would allow one to draw inferences regarding both the impact on merger proposals on volatility and investors’ anticipation of the variance of the merger proposals change (Jayaraman & Shastri, 1993).The next section of this paper presents a general description of the data and methodology used in this study. The estimated results will be presented in Section 3, and the paper concludes with a summary.en
dc.format.extent1-21en
dc.language.isoenen
dc.publisherLincoln University. Commerce Divisionen
dc.relationThe original publication is available from - Lincoln University. Commerce Division - http://hdl.handle.net/10182/957en
dc.subjectexchange valueen
dc.subjectmarket analysisen
dc.subjectbank mergersen
dc.subjecteconometric modelsen
dc.subjecteconomic issuesen
dc.subjecteconomic integrationen
dc.subjectsecuritiesen
dc.subjectstock marketsen
dc.titleThe implication of a merger announcement on share price : an event case study of Trust Bank New Zealand Limiteden
dc.typeDiscussion Paper
dc.subject.marsdenFields of Research::340000 Economics::340200 Applied Economics::340203 Finance economicsen
dc.subject.marsdenFields of Research::340000 Economics::340200 Applied Economics::340202 Environment and resource economicsen
dc.subject.marsdenFields of Research::340000 Economics::340400 Econometrics::340401 Economic models and forecastingen
lu.contributor.unitLincoln Universityen
lu.contributor.unitFaculty of Agribusiness and Commerceen
lu.contributor.unitDepartment of Financial and Business Systemsen
lu.contributor.uniten
lu.contributor.uniten
dc.subject.anzsrc1502 Banking, Finance and Investmenten
dc.relation.isPartOfCommerce Division Discussion Paperen
pubs.issueNo. 21en
pubs.organisational-group/LU
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce/FABS
pubs.organisational-group/LU/Research Management Office
pubs.organisational-group/LU/Research Management Office/2018 PBRF Staff group
pubs.publication-statusPublisheden
pubs.publisher-urlhttp://hdl.handle.net/10182/957en
dc.publisher.placeLincoln, Canterburyen
lu.identifier.orcid0000-0002-5618-1651


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