RHODES-KROPF, MATTHEW; ROBINSON, DAVID T. - In: Journal of Finance 63 (2008) 3, pp. 1169-1211
We relate the property rights theory of the firm to empirical regularities in the market for mergers and acquisitions. We first show that high market-to-book acquirers typically do not purchase low market-to-book targets. Instead, mergers pair together firms with similar ratios. We then build a...