HACKBARTH, DIRK; MORELLEC, ERWAN - In: Journal of Finance 63 (2008) 3, pp. 1213-1252
This paper develops a real options framework to analyze the behavior of stock returns in mergers and acquisitions. In this framework, the timing and terms of takeovers are endogenous and result from value-maximizing decisions. The implications of the model for abnormal announcement returns are...