Coakley, Jerry; Fu, Lei; Thomas, Hardy - In: Applied financial economics 20 (2010) 1/3, pp. 201-211
We provide evidence that ex ante misvaluation matters for merger activities in the UK 1986-2002 using a sample of 302 bidders and targets. Sector or long-run misvaluation causes merger firms to be more overvalued than nonmerger firms. Acquirers are overvalued absolutely and relative to targets...