The Post-Merger Equity Value Performance of Acquiring Firms in the Hospitality Industry

Abstract

ABSTRACT This paper investigates long run equity value performance of acquiring firms in the hospitality industry. The performance analysis has been done using the Jensen Measure Model and the Market Model. The study shows significantly negative equity value performance of the acquiring hospitality firms at least for the period 1980–2000. As such, the impact of mergers and acquisitions on equity value of acquiring firms in the hospitality industry is better understood.