Purpose – The primary purpose of this paper is to test the prediction that overpricing drives merger waves. Design/methodology/approach – The authors supplement proxies of overpricing from the existing literature such as subsequent under-performance, the form of consideration/financing and...

Purpose – The primary purpose of this paper is to test the prediction that overpricing drives merger waves. Design/methodology/approach – The authors supplement proxies of overpricing from the existing literature such as subsequent under‐performance, the form of consideration/financing and...