We investigate those features of Australian firms that make them likely takeover targets. To this end, we apply a logit probability model similar to the one developed by Palepu (1986). Our findings reveal that takeovers are most likely to be motivated by market under-valuation combined with high...

We find that the threat of takeover has a negative relation with default risk. The result is robust to alternative estimation methods, different measures of default, exclusion of the financial crisis period and over a number of sub-periods. We identify improvement in performance and earnings...

This study examines the effects of announcements of acquisition of assets on shareholder wealth of buyers over the period January 2000 to December 2002 in the U.K. Significant positive announcement period abnormal returns for ‘fit' acquisitions of divested assets that disclosed the “sources...

We exploit the staggered initiation of merger and acquisition (M&A) laws across countries as a plausibly exogenous shock to the threat of takeover to examine whether the market for corporate control has a real effect on firm-level stock price crash risk. Using a difference-in-differences...

We present a case study on Incitec Pivot Limited's (“IPL”) acquisition strategy during a major stock market swing to demonstrate how valuation aberrations can be leveraged to create long term value for shareholders. We discuss the management strategies, structures, and ideology of IPL and...