We find that the deal structure decision to engage in a foreign asset purchase instead of acquiring a foreign target's equity is more likely when bidders are smaller, the bidder's proportion of foreign sales-to-total sales is higher and the target is in an unrelated industry. In addition,...

We find that in general, parents experience an increase in risk following divestitures, although the specific increase is conditioned on the form of divestiture and the type of proxy used to measure risk. The increase in risk following divestitures is generally higher for carve-outs than for...

We identify time-varying industry and macroeconomic factors that explain the observed variation in takeover premiums over time. Results support our hypotheses that some industry and economic factors can increase the growth prospects in an industry, which boosts expected synergies and/or demand...

The anticipation of an acquisition attracts informed trading, which can cause a high run-up in the target stock price prior to an announced acquisition bid. Because research has shown that bidders do not reduce their bid price to compensate for a relatively high run-up, a larger run-up increases...

We find that banks with more capital experienced more severe stock price declines during the recent financial crisis. We also find that banks with more capital experienced higher betas and stock volatility levels during the financial crisis. These results support the capital signaling...

The stock price runup of target firms in the market for corporate control has been anecdotally attributed to inside trading. Moreover, the empirical merger and acquisitions literature documents a time-varying level and duration of the stock price runup of target firms. Using a market...

We assess the valuation effects and risk for acquirers of privatized state-owned enterprises (SOEs). The valuation effects of purchasers are positive and significant; they increase for purchasers that have recent high performance, better access to capital, and have engaged in larger...

Since foreign high-tech firms exhibit a high level of asymmetric information, there is much investor skepticism surrounding the potential benefits to US firms that acquire them. However, the investor perception may be more favorable when the acquisitions involve more visible targets and advice...