Showing 1 - 10 of 1,196
have witnessed significant merger and acquisition activity as a result of these reforms in attempts to privatize and …
Persistent link: https://www.econbiz.de/10013245488
This paper investigates the merger wave hypothesis for the US and the UK employing a Markov regime switching model …. Using quarterly data covering the last thirty years, for the US, we identify the beginning of a merger wave in the mid 1990s … but not the much-discussed 1980s merger wave. We argue that the latter finding can be ascribed to the refined methods of …
Persistent link: https://www.econbiz.de/10010315576
The multivariate reduced rank regression model plays an important role in econo- metrics. Examples include co-integration analysis and models with a factor struc- ture. Geweke (1996) provided the foundations for a Bayesian analysis of this model. Unfortunately several of the full conditional...
Persistent link: https://www.econbiz.de/10012654381
We analyze a Bayesian merger game under two-sided asymmetric information about firm types. We show that the standard … prediction of the lemons market model-if any, only low-type firms are traded-is likely to be misleading: Merger returns, i.e. the … difference between pre- and post-merger profits, are not necessarily higher for low-type firms. This has two implications. First …
Persistent link: https://www.econbiz.de/10010315535
This paper examines the determinants of mergers and bankruptcies, using firm level data from the Swiss Business Census and the Dun & Bradstreet exit database for Switzerland (1995-2000). Employing duration analysis, we find considerable differences in the determinants of mergers and...
Persistent link: https://www.econbiz.de/10010315602
We consider a setting in which two potential merger partners each possess private information pertaining both to the … ex-post regret an unavoidable phenomenon in merger negotiations. To this end, we consider ex-post incentive compatible … mechanisms, which use both players' reports to determine whether or not a merger will take place and what each player will earn …
Persistent link: https://www.econbiz.de/10010315578
' types. We show that there is always a no-merger equilibrium where firms do not consent to a merger, irrespective of their … type. There may also be a cut-off equilibrium if the expected merger returns satisfy a suitable single crossing condition …, which will hold if a firm's merger returns are essentially monotone decreasing in its type. Applying our analysis to the …
Persistent link: https://www.econbiz.de/10010315502
This paper presents a new method to detect informed trading activities in the options markets.An option trade is identified as informed when it is characterized by an unusual largeincrement in open interest and volume, induces large gains, and is not hedged in the stock market.For the period...
Persistent link: https://www.econbiz.de/10005868704
This paper tests two competing hypotheses about the influence of financial institutions as large shareholders on the performance of their industrial portfolio firms: the superior monitoring hypothesis versus the rent extraction hypothesis. The methodology of this study exploits the abolishment...
Persistent link: https://www.econbiz.de/10005857793
This paper develops a real options framework to analyze the behavior of stock returns in mergers and acquisitions. In this framework, the timing and terms of takeovers are endogenous and result from value-maximizing decisions. The implications of the model for abnormal announcement returns are...
Persistent link: https://www.econbiz.de/10005858239