Vermaelen, Theo; Xu, Moqi - In: Journal of Corporate Finance 25 (2014) C, pp. 73-91
Bidders have an incentive to pay with stock when their shares are overvalued, but target firms should be reluctant to accept such overvalued payment. In a sample of 2978 acquisitions, we find that stock payment is readily accepted only when the bidder can justify the financing decision in terms...