We present a real-options model of takeovers and disinvestment in declining industries. As product demand declines, a first-best closure level is reached, where overall value is maximized by shutting down the .rm and releasing its capital to investors. Absent takeovers, managers of unlevered...

This paper discusses the housing market in the Netherlands. Our study benefits from access to the DNB household survey (formerly known as CentER Savings Survey) and analyzes a panel dataset of 8867 households over the period 1992-2005.

What causes mergers and acquisitions (M&A)? This is an issue that still remains to some extent a puzzle. While we can, of course, come up with a story or motive for each individual merger or takeover case, finance theory has not quite managed yet to formulate a coherent theory that is generally...