this framework, the timing and terms of takeovers are endogenous and result from value-maximizing decisions. The … transactions. Using a sample of 1086 takeovers of publicly traded US firms between 1985 and 2002, we present new evidence on the …

We examine merger activity and its effect on asset pricing in a firm network economy. Mergers create internal capital …. The possibility of a merger increases the equity value of standalone firms. Higher network dep endence generally increases … merger activity but nevertheless causes lower firm equity values. Recession and expansion, as measured by the average debt …

but not traded), and their core competencies (what can neither be traded nor be learned). A merger is chosen when the two …

This paper analyzes the interaction between financial leverage and takeover activity. We develop a dynamic model of … takeovers in which the financing strategies of bidding firms and the timing and terms of takeovers are jointly determined. In …, and takeover terms, in which the bidder with the lowest leverage wins the takeover contest. Based on the resulting …