Misvaluation and financial constraints : method of payment and buyer identity in mergers & acquisitions

Aron Berg

The paper studies how stock price misvaluation and financial frictions affect whether an acquisition occurs between or within industries and whether the acquirer pays in cash or stocks. I set up a model where stock market misvaluation correlates within industries and across industries and assume that managers have private information regarding their own firm and firms similar to it. The model yields predictions regarding which firm acquires which firm, and the method of payment used in transactions.

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Year of publication:	March 15, 2017
Authors:	Berg, Aron
Publisher:	Stockholm, Sweden : Research Institute of Industrial Economics
Subject:	Mergers and acquisitions \| Investments \| Asymmetric information \| Stock misvaluation \| Financial frictions \| Theorie \| Theory \| Übernahme \| Takeover \| Asymmetrische Information \| Fusion \| Merger \| Unternehmensbewertung \| Firm valuation \| Liquiditätsbeschränkung \| Liquidity constraint \| Kapitaleinkommen \| Capital income \| Investition \| Investment

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Extent:	1 Online-Ressource (circa 33 Seiten)
Series:	IFN working paper. - Stockholm, ZDB-ID 2483275-3. - Vol. no. 1157 (2017)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/183386 [Handle]
Classification:	D82 - Asymmetric and Private Information ; G32 - Financing Policy; Capital and Ownership Structure ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011621231