Capron & Pistre (2002)

Question 1

When do acquirers earn abnormal returns?

Answer 1

Acquirers do not earn abnormal returns when they only receive resources from the target. In this case, it is likely that multiple bidders, which could have equally captured these resources, competed away all the abnormal returns from the successful bidder.

In contrast, we find that acquirers can expect to earn abnormal returns when they transfer their own resources to the target.

H1 (SUP): When the target controls resources, the acquire does not get the returns
H2 (SUP): When the acquirer controls resources, the acquirers does get the returns
H3 (NOT): when both control resources, it is unclear.