Thibaut Morillon examines phenomenon of declining announcement returns of serial acquirers

The assistant professor of finance’s paper is published in the Financial Review.

Thibaut Morillon, assistant professor of finance at the Martha and Spencer Love School of Business, recently had his paper, “Serial acquirers and decreasing returns: Do bidders’ acquisition patterns matter?,” published in the Financial Review.

Portrait of Assistant Professor of Finance Thibaut Morillon
Assistant Professor of Finance Thibaut Morillon

In the paper, Morrillon investigates the phenomenon of declining announcement returns of serial acquirers.

The abstract introduces Morrillon’s methods and findings: “Using a classification of acquirers based on their patterns of acquisition, I find that decreasing returns occur mostly within ‘blocks’ of acquisitions. This trend is driven by bidders who acquire targets quickly in chunks. In contrast, I find no evidence of any such decline in returns for the most active acquirers in the market of corporate control. I test several theories proposed by the prior literature to explain declining returns and find evidence consistent with temporary overvaluation, agency costs, and bidder learning as likely drivers.”

The Financial Review publishes original empirical, theoretical and methodological research providing new insights into issues of importance in all areas of financial economics.

Morillon joined Elon in 2019 after completing his doctorate in finance from the University of Missouri. His research interests include mergers and acquisitions, international finance, corporate governance, and real estate. Prior to his academic career, Morillon was a financial advisor at LCL Bank.