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Ignatyeva, Elena - 2013

This paper analyzes Special Purpose Acquisition Companies (SPACs) in Europe. We document various aspects associated with European SPACs by using a unique and hand-collected data sample encompassing all 19 SPACs which have been listed on European stock exchanges since 2005. The paper shows that...

Persistent link: https://www.econbiz.de/10013090227

The Consolidation of the Global Brewing Industry and Wealth Effects from Mergers and Acquisitions

Mehta, Ramit - 2013

effects of horizontal mergers and acquisitions on acquirers in the brewing industry. Based on a sample of 69 takeover …

Persistent link: https://www.econbiz.de/10013090726

Shareholder Wealth Creation in Response to Announcements of Acquisitions of Unlisted Firms : Evidence from Spain

Farinós Viñas, José Emilio - 2013

We investigate shareholder value creation of Spanish listed firms in response to announcements of acquisitions of unlisted companies and compare this experience to the purchase of listed firms over the period 1991–2006. Similar to foreign markets, acquirers of listed targets earn insignificant...

Persistent link: https://www.econbiz.de/10013091093

Earnings-reducing Activities before Management Buyouts

Li, Xi - 2013

During the year prior to management buyout (MBOs) announcements, target firms exhibit abnormally high discretionary expenses in selling, general and administration, abnormally low discretionary accruals, and realize losses from asset sales. Higher discretionary expenses and losses from asset...

Persistent link: https://www.econbiz.de/10013091388

Benefits and Costs of Asset Reallocation in Mergers and Acquisitions

Li, Wei-Hsien - 2013

The Q-theory of mergers and acquisitions proposes that takeovers of low-Q targets by high-Q acquirers should be value creating as acquirers redeploy the targets' assets. Recent evidence on the direct relationship between Q and value creation is mixed. We present a simple model which suggests...

Persistent link: https://www.econbiz.de/10013091756

The Post-Deal Returns of Acquiring Firms : Evidence of an Investment-based Explanation

Mortal, Sandra - 2013

This paper examines an investment-based explanation for the poor post-deal returns associated with acquisitions. Using a large sample of U.S. firms, we find that the post-deal abnormal stock returns, operating returns, and analyst forecast errors associated with acquisitions are similar to those...

Persistent link: https://www.econbiz.de/10013093729

Does a Firm's Takeover Vulnerability Cause Its Stock Price to Deviate from Random Walks?

Chae, Joon - 2013

This paper examines whether a firm's takeover vulnerability increases the scope of speculative noise trading for its … stock. Specifically, the paper tests whether takeover vulnerability overly motivates investors to acquire and trade on … is larger when its takeover vulnerability is greater and its information environment is poorer. In a sufficiently good …

Persistent link: https://www.econbiz.de/10013093734

Managerial Gambling Attitudes : Evidence from Bank Acquisitions

Doukas, John A. - 2014

in U.S. bank takeover decisions. The evidence demonstrates that offer price premiums and target announcement returns are … much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high …

Persistent link: https://www.econbiz.de/10013064168

Executive Compensation and Informed Trading in Acquiring Firms around Merger Announcements

Ordu, Umut - 2014

This paper analyzes informed trading in acquiring firms through (stock) merger announcements. We show that pre-announcement abnormal option volumes in acquiring firms strongly increase ahead of a stock merger (by approximately 300%). Furthermore, we show that the direction of option trades (puts...

Persistent link: https://www.econbiz.de/10013064748

The Economic Consequences of Financial Restatements : Evidence from the Market for Corporate Control

Amel-Zadeh, Amir - 2014

firms that recently filed financial restatements are significantly less likely to become takeover targets than a propensity … score-matched sample of non-restating firms. For those restating firms that do receive takeover bids, the bids are more …

Persistent link: https://www.econbiz.de/10013065529