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We model a firm in an institutional market setting, consisting of a production technology and its governance. The … governance consists of a hierarchical firm structure, a cost efficiency parameter,and an internal pay system. The depth of the …
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We find that the decision by a potential acquirer to complete or cancel an announced acquisitionproposal is sensitive to new information generated after the announcement of the acquisition.Both the acquirer and target’s cumulative abnormal returns (CAR) over different windows afterthe...
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