This paper aims to examine the effect of deals characteristics (types of target
and method of payment) on the short-term common stock returns of acquirers in
acquisitions. The sample composes of acquisitions during the period from 2000
to 2013. The study finds that cash-financed acquisitions create positively
significant returns to the wealth of shareholders’ of bidders. Meanwhile, types
of target neither create nor destroy short-term value to the bidding firms. The
indifferent result for types of targets shows that shareholders of acquiring
companies do not react regardless if the target are from public or private
companies.
