We examine the use of a contracting method in mergers and acquisitions known as an earnout. In this type of transaction, the bidder agrees to pay the target an initial amount for the acquisition plus future payments contingent on the achievement of performance milestones. Theory suggests that...

This dissertation consists of three essays on corporate acquisitions, bidders liquidity and monitoring. In the first essay, Acquisitions and Bidders Liquidity: Evidence from Successful and Unsuccessful Takeovers, I examine the impact of corporate acquisitions on bidders liquidity. I find that...