Fu, Fangjian; Lin, Leming; Officer, Micah S. - In: Journal of Financial Economics 109 (2013) 1, pp. 24-39
Theory and recent evidence suggest that overvalued firms can create value for shareholders if they exploit their overvaluation by using their stock as currency to purchase less overvalued firms. We challenge this idea and show that, in practice, overvalued acquirers significantly overpay for...
