Cash acquirers are an interesting sub-group of acquirers. Whereas the overall evidence seems to suggest the majority of mergers and acquisitions destroy shareholder value in the long term, cash-financed acquisitions do not appear to do so. Yet this seems at variance with the prediction from...

Although Jensen (1988) argues that high levels of free cash flow and unused borrowing capacity are likely to encourage low-value mergers, the “pecking order” theory offers a different perspective, where managers conserve cash flow to undertake positive NPV investments. We argue that the...

Introduction (C. Cooper, A. Gregory). The post merger performance puzzle (A. Agrawal, J.F. Jaffe). The influence of cultural compatibility within cross-border acquisitions: a review (R. Schoenberg). Integrating mergers and acquisitions: an international reseearch review (D.M. Schweiger, P.K....

Creating value through merger and acquisition integration / David M. Schweiger, Philippe Very -- The operating performance of companies involved in acquisitions in the U.K. retailing sector, 1977-1992 / Steve Burt, Robin Limmack -- Shareholder wealth effects of diversification strategies : a...

Using a sample of UK mergers and acquisitions from 1985-2004, we show that equity over-valuation appears to play an important role in the determination of financing method. Our results are broadly consistent with the Sheifer and Vishny (2003) theory of market-driven acquisitions rather than a...