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- W2795203277 abstract "Purpose The purpose of this paper is to measure and observe stock market and investor reactions (benchmark adjusted cumulative abnormal returns (CARs)) to the announcement of Marriott’s acquisition of Starwood and related merger and acquisition (M&A) news and related activities over a two-year period. Design/methodology/approach Empirical models and quantifications were developed and tested through event study analysis to test the Marriot-Starwood M&A news and related activities and to observe the abnormal stock return patterns. Several data sources were employed including Factiva by Dow Jones, Wall Street Newspaper , CRSP/COMPUSTAT merged files, and ValueLine Research. Findings This paper provides financial insights and outcomes of pre-, during, and post-Marriot-Starwood merger. While equity returns to Starwood were mostly flat, Marriott experienced negative returns around the acquisition announcement and anytime a news article appears following the announcement. However, performance proxies showed that Marriott’s shareholders gained superior buy and hold returns following the acquisition in the long run. Research limitations/implications Short-term event study methodology might be less than perfect in examining the stock returns to acquisitions. Therefore, future research is encouraged to test and observe Marriot-Starwood merger using longer time periods with predictive analysis to check the further usability of the results. Practical implications The study’s findings practically signal that overreaction in the short term is followed by a correction with an improvement in returns and sales performance of Marriot. In the majority of the acquisitions, integration process is not planned until after the acquisition announcement or the deal completion. Originality/value This paper contributes to the existing literature by demonstrating the financial issues, challenges, and outcomes of the biggest merger in the history of the global lodging industry." @default.
- W2795203277 created "2018-04-06" @default.
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- W2795203277 date "2018-03-28" @default.
- W2795203277 modified "2023-09-23" @default.
- W2795203277 title "Marriott Starwood merger: what did we learn from a financial standpoint?" @default.
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- W2795203277 doi "https://doi.org/10.1108/jhti-10-2017-0009" @default.
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