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If a bidder launches a takeover offer for a listed company being part of a stock market index, then index funds and exchange traded funds (ETF) as shareholders of this company cannot easily tender their shares without losing track of the index. This paper analyzes the impact of index fund and...
Persistent link: https://www.econbiz.de/10012864050
The Berger and Ofek (1995) excess value measure, comparing a conglomerate's actual market value to an imputed value based on standalones, has become the standard method to determine value effects of diversification. In this paper, we address a significant bias in this procedure stemming from the...
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We are interested in the effect of capital income taxes upon security prices when investors face locally segmented stock markets and a global bond market. Therefore, we analyze an equilibrium model of an economy with binomial uncertainty, an exogenous risk-free interest rate and a representative...
Persistent link: https://www.econbiz.de/10014071690
Using a dataset of 1,149 global private equity transactions, we find that cross-border buyouts are associated with significantly higher valuation multiples than domestic ones. We attribute this finding to informational disadvantages of foreign acquirers. Consistent with this idea, we find that...
Persistent link: https://www.econbiz.de/10013300015
B&B strategies are increasingly popular, with past studies showing them to achieve superior returns. The question of how exactly B&B strategies create value is, however, still a "black box". Relying on a unique and proprietary sample of 161 B&B buyouts with valuation details on related add-on...
Persistent link: https://www.econbiz.de/10013403766
This study considers the trade-off between better top management team (TMT) decision-making involving complementary perspectives and inefficiencies due to conflicts between individuals. In analyzing characteristics of 1,071 fund partners involved in 1,295 buyout deals by 117 funds, we find that...
Persistent link: https://www.econbiz.de/10013405576
Pre-bid target share price movements are potentially increasing the cost of takeovers and thus are seen as a detriment for the efficiency of the market for corporate control. This pa-per investigates the relationship of pre-bid stock price movements, takeover regulation and offer premium and...
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