We empirically examine whether the elimination of negative synergies, the reduction of internal capital market inefficiencies, and the mitigation of information problems following spinoffs lower cost of equity. The results indicate that there is no decrease in the cost of equity in the full...

We empirically examine whether the elimination of negative synergies, the reduction of internal capital market inefficiencies, and the mitigation of information problems following spinoffs lower cost of equity. The results indicate that there is no decrease in the cost of equity in the full...

A strategic alliance is a hybrid organizational form that is between an arms length contract and a full-fledged merger between firms. In some alliances firms take a minority equity stake in the partner firm. We refer to these as equity alliances. Using data on 759 alliances, we examine the...

A merger requires at least one of two separate yet equally important sets of negotiations. The first set involves merging parties to discuss issues related to the terms of the merger, including target firm's valuation. The second set resolves disputes between the merging parties and the law...

We empirically examine whether the elimination of negative synergies, the reduction of internal capital market inefficiencies, and the mitigation of information problems following spinoffs lower cost of equity. The results indicate that there is no decrease in the cost of equity in the full...