We estimate operating synergies from a unique hand-collected dataset on management's forecasts of merger incremental cash flows. We find that forecasted synergies induce acquirers to make leverage-increasing acquisitions. Institutional investors and bidders' credit rating enhance that relation...

The study examines whether prestigious investment banks deliver quality gains to their clients in a sample of 6,379 US Mamp;A deals. It finds that acquirers advised by tier-one advisors lost more than $42 billion, whereas those advised by tier-two advisors gained $13.5 billion at the merger...

I study a sample of 336 M&A deals to investigate the effect of managements' estimate of synergy on the reservation price and the payment method. I find that synergy does not explain the premium paid implying that it may have been announced to induce shareholders to endorse the deal. Acquiring...

We analyze 635 US M&A transactions from 1985 to 2004. In contrast with prior research, we distinguish between the target and acquirer fees, and examine their independent effects on the level of the merger premium. The study provides evidence of a positive (negative) association between target...

Although bank mergers have been a topic of ongoing research in the USA, particularly in view of reforms instituted by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, the evidence on shareholder wealth effects in European bank mergers is thin. A key question is whether...

The paper explores whether the effects of cross-listing on analyst following and forecast error differ between firms with different accounting standards. The results reveal a higher increase in the number of analysts for cross-listed firms that follow their home country GAAPs prior...

This study proposes a new direct method of measuring managerial overconfidence using an acquisition setting. CEOs with significantly higher synergies forecast error (SFE), measured as the deviation between acquisition forecasted operating synergies and actual realized operating synergies, are...

In this study, a doubly nested tide–surge interaction model was established for the coastal region of Bangladesh. A fine grid model, capable of incorporating all major offshore islands, was nested into a coarse grid model extending up to 15°N latitude of the Bay of Bengal. To take into...

This study considers shareholder returns using 16,221 US takeovers between 1985 and 2004. It finds that single acquirers out-perform multiple acquirers by 1.66%, and that the gap widens to 5% in equity exchange offers. In contrast to multiple acquirers, single acquirers generate higher returns...

We analyze 635 US M&A transactions from 1985 to 2004. In contrast with prior research, we distinguish between the target and acquirer fees, and examine their independent effects on the level of the merger premium. The study provides evidence of a positive (negative) association between target...