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One of the key processes that business leaders are using to grow their organizations is mergers and acquisitions (M …
Persistent link: https://www.econbiz.de/10012286798
There is a widespread belief among observers that a lower premium is paid when the target CEO is retained by the acquirer in a private equity deal because the CEO's potential conflicts of interest leads her to negotiate less aggressively on behalf of the target shareholders. Our empirical...
Persistent link: https://www.econbiz.de/10011963282
industrial rganization (much of it involving estimating the effects of mergers on industry competitors). The volume ends with a … for the CEO), governance spillovers from cross-border mergers (are there any?) and, finally, the returns to merger …
Persistent link: https://www.econbiz.de/10008906523
Reverse mergers are an alternative method to IPOs for going public and announcement day price reaction to reverse … mergers is comparable to the initial day price reaction to IPOs. Most of the academic theories developed thus far to explain … the market's reaction to IPOs, however, are not applicable to reverse mergers. Using reverse mergers as an out …
Persistent link: https://www.econbiz.de/10013131627
in acquiring firms' stocks prior the announcement of mergers. While we show a surge in shorting activity after the …
Persistent link: https://www.econbiz.de/10013133912
In this paper, we use call option prices to identify synergies and news from merger and acquisition (M&A) transaction announcements. We find that M&A announcements result in large and approximately equal gains to the bidder and the target on average, with the combined gains being large enough to...
Persistent link: https://www.econbiz.de/10013113888
We examine the characteristics of the sixth merger wave that started in 2003 and came to an end approximately in late-2007. The drivers of this wave lie primarily in the availability of abundant liquidity, in line with neoclassical explanations of merger waves. Acquirers were less overvalued...
Persistent link: https://www.econbiz.de/10013115982
terms of mergers. To investigate this question, we designed a modified event study to test whether markets respond to the … (which delineate the legal terms). We focused on a data set of cash-only public company mergers spanning the decade from 2002 … effects of the clients' own managerial hubris in pursuing mergers that may (and often do) fall short of expectations …
Persistent link: https://www.econbiz.de/10013103781
There is little consensus regarding the overall performance of mergers and acquisitions in the banking industry. The … goal of this paper is to investigate the change in operating performance, efficiency, and value addition of US bank mergers … and acquisitions after GLBA. We extend the previous research by combining all the previous methodologies used in mergers …
Persistent link: https://www.econbiz.de/10012964750
Unscheduled stock options to target CEOs are a non-trivial phenomenon during private merger negotiations. In 920 acquisition bids during 1999-2007, over 13% of targets grant them. These options substitute for golden parachutes and compensate target CEOs for benefits they forfeit because of the...
Persistent link: https://www.econbiz.de/10013152916