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Persistent link: https://www.econbiz.de/10008768525
We propose an alternative measure of the long-term economic impact of mergers on firm value: post-acquisition changes in intrinsic value. Consistent with the literature on post-acquisition returns, the intrinsic value of merged firms decreases on average in the three years following deal...
Persistent link: https://www.econbiz.de/10008866608
When target firms are advised by top-tier investment banks, target firms earn 3% higher returns, combined returns are 1% higher, target share of gains is 11% greater, but acquirer returns are not necessarily lower. In deals where top banks advise targets, more bidders compete for the targets,...
Persistent link: https://www.econbiz.de/10012734939
This paper presents evidence on the correlation between stock returns in January and the earnings information released in the month. The annual earnings announced in January are predominantly positive, and the stock returns in late January are abnormally high than in the remainder of the year....
Persistent link: https://www.econbiz.de/10012707239
This study values takeover targets in the gaming industry and finds that privately held takeover targets command lower valuations than publicly traded firms. On average valuation multiples are 46% lower for private targets relative to public firms. This finding has significant implications for...
Persistent link: https://www.econbiz.de/10010869687
Persistent link: https://www.econbiz.de/10010121613
Should takeover target firms hire top-tier investment bank advisors? For a sample of mergers and acquisitions between publicly traded U.S. acquirers and targets, in deals in which targets hire top-tier banks, targets earn higher premiums and abnormal returns; the probability of stock payment is...
Persistent link: https://www.econbiz.de/10010680687
There is a strong inverse relation between insider trading and institutional demand the same quarter and over the previous year. Our analysis suggests a combination of factors contribute to this relation. First, institutional investors are more likely to provide the liquidity necessary for...
Persistent link: https://www.econbiz.de/10012727001
Our analysis suggests that boards focus on deviation from expected performance, rather than performance alone, in making the CEO turnover decision, especially when there is agreement (less dispersion) among analysts about the firm's earnings forecast or there are a large number of analysts...
Persistent link: https://www.econbiz.de/10012739090
Our analysis suggests that boards focus on deviation from expected performance, rather than performance alone, in making the CEO turnover decision, especially when there is agreement (less dispersion) among analysts about the firm's earnings forecast or there are a large number of analysts...
Persistent link: https://www.econbiz.de/10012785998