The M&A transactions represent a wide range of unique business optimization opportunities in the corporate transformation deals, which are usually characterized by the high level of total risk. The M&A transactions can be successfully implemented by taking to an account the size of investments,...

Many asset pricing models consider ‘disagreement’ (heterogeneous expectations), while a variety of other asset pricing models focus on ‘tastes’ (preferences beyond risk aversion); yet relatively few asset pricing models simultaneously consider both. The Popularity Asset Pricing Model...

This paper examines the relationship between asymmetric information and target returns in M&As. We argue that if managers possess favorable (unfavorable) asymmetric information, they will offer, ceteris paribus, high (low) premia, affecting target returns accordingly. We propose several proxies...

The economic and monetary unification, the globalization of markets and the increasing use of new Information and Communication Technologies (ICT) have increased the level of competition in all sectors of the economy by opening the way to processes of Mergers and Acquisitions between companies....

We evaluate the economic consequences of the performance commitment clauses for acquisition deals from 2007 to 2017 in China. We find that acquisition aggressiveness is positively associated with failure of delivering performance commitment. Such effect is alleviated in cash-paid deals but is...

We examine the influence of common ownership on commonalities in the information environment. Specifically, we study commonalities in financial statements and in the actions of key agents such as financial analysts and firm managers who contribute and respond to the information environment....

I review the empirical literature on word of mouth (WOM) among investors. I begin with an outline of the empirical challenges that WOM research faces and possible strategies to overcome those challenges. I then discuss recent studies on WOM among retail and institutional investors. The research...

By means of a simple economic model, Shleifer and Vishny (1989) describe how top managers can entrench themselves by specific overinvestment. An extension of the model with additional investments exposes interdependencies that exceed the primary value of explanation. The extension of the model...

The issue of valuing tax loss-carryforwards (TCLFs) and carrybacks (TLCBs) arises frequently in theory and practice. While there have been a number of empirical papers that have shown TLCFs (TLCBs) are value relevant, there is little guidance on how to actually value these. The few analytical...