RHODES-KROPF, MATTHEW; VISWANATHAN, S. - In: Journal of Finance 59 (2004) 6, pp. 2685-2718
Does valuation affect mergers? Data suggest that periods of stock merger activity are correlated with high market valuations. The naïve explanation that overvalued bidders wish to use stock is incomplete because targets should not be eager to accept stock. However, we show that potential market...