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predicts takeover outcomes. It shows that positive media content about the acquirer predicts takeover success. Relative to …
Persistent link: https://www.econbiz.de/10013008806
The effect of severance pay on management behavior during a takeover battle is generally ambiguous. Yet, the severance …
Persistent link: https://www.econbiz.de/10009491061
for mounting a critique of the use of management and control systems by global corporations. It provides General Electric …'s takeover of the Italian company Nouvo Pignone as an instance. The systems are an essential element in the expansionary … generic management and control systems into the firms it acquires runs afoul of a Levinasian ethics. That many large global …
Persistent link: https://www.econbiz.de/10013160457
analysis of takeover rumors of publically traded US companies from 1990 to 2008 shows that these two types of rumors can be … statistically distinguished by returns of rumored takeover targets before rumor publication. However, market responses to the rumors …, takeover premiums of sampled targets cannot be explained by markup pricing hypothesis although the hypothesis is supported by …
Persistent link: https://www.econbiz.de/10013133068
A large body of literature demonstrates that acquisitions are on average value-destroying for the acquirer. We investigate whether the change in the acquirer's information uncertainty contributes to acquirer wealth losses. Information uncertainty affects the discount rate (the cost of capital),...
Persistent link: https://www.econbiz.de/10013124334
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 2,978 acquisitions, we find that stock payment is readily accepted only when the bidder can justify the financing decision in terms...
Persistent link: https://www.econbiz.de/10013075043
We study the impact on industry liquidity of delistings resulting from leveraged buyout activity. Using data on U.S. LBOs during the 1985-2008 period, we uncover evidence of negative liquidity externalities. We find that the liquidity of firms in the same industry as the LBO target drops during...
Persistent link: https://www.econbiz.de/10013157683
Prior literature documents that acquirers earn declining returns to acquisitions as they continue acquiring. Using a novel typology of serial acquirers, we show that subsequent acquisitions by acquirers are predictable ex ante. Controlling for market anticipation, there is little evidence that...
Persistent link: https://www.econbiz.de/10012842975
UK data over the period 1988 to 2017. We find that takeover likelihood increases with “poor” management and “myopia”, but … framework for modelling management performance. This framework proposes “poor” management, “myopia”, “hyperopia” and “efficient …” management, as four distinct attributes of performance. We show that these new attributes align with, and extend, existing …
Persistent link: https://www.econbiz.de/10012844991
This article provides experimental evidence that bidder and target shareholders of a takeover announcement exhibit …
Persistent link: https://www.econbiz.de/10012955588