This study is to investigate the movement of stock
price in a tender offer strategy by the firm. The ultimate of success and
failure of tenders offers of a firm can be predicted by the stock prices
movements. Twenty-three firms listed in Indonesian Stock Exchange are selected as a
sampleto be analyzed which carry out the tender offer during COVID-19 Pandemic
period of year 2020 to 2022. The tender offer positively affects the stock
price at the first day after tender offer period and the average stock price of
one month period after the tender offer period. This study also shows that the
difference between tender offer price and stock price of one day prior the
tender offer period will negatively affect the stock price of one day after
tender offer period and the average stock price of one month period after the
tender offer period. The proportion of number of stocks to be offered in tender
offer has no effect on stock price both in one day after stock tender offer
period and the average stock price of one month period after the tender offer
period. The result of the study is important for the stock market investors to
get abnormal returns by buying stocks which will carry out a tender offer
strategy and consider the motivation of firm to enhance the firm performance
and good reputation of the prospective buyer.
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