Resumen de Post-merger stock performance of acquiring hospitality firms

Jing Yang, Woo Gon Kim, Hailin Qu

• This study examines the long-term post-merger stock performance of acquiring hospitality firms between 2000 and 2006 in the USA.

  The Jensen measure is used to investigate the long-term financial performance of acquiring hospitality firms. A sample of 15 hospitality companies with 8 lodging REITs and 7 hotel/casino companies is analysed. The companies' stock performances are compared against indices of related hotel and REITs sectors and against the S&P 500 index. The study generates mixed findings. The results showed significant positive gains for the acquiring firms when compared to the S&P 500 index; yet, the acquiring firms failed to generate significant gains when compared to sector indices. Furthermore, the REITs firms performed less well than the hotel/casino firms when compared against both market and sector indices.