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Eisdorfer, Assaf; Morellec, Erwan; Zhdanov, Alexei - 2020

We argue that takeover protections decrease equity value and increase equity risk and stock returns by removing a … anti-takeover laws, both domestically and internationally. In line with our predictions, we find that distressed firms … experience a significant decrease in value and increase in returns and market betas after the passage of anti-takeover laws. Pro-takeover …

Persistent link: https://www.econbiz.de/10012419693

Going public in China : reverse mergers versus IPOs

Lee, Charles M. C.; Qu, Yuanyu; Shen, Tao - 2018 - This draft: July 17, 2018

We study firms that go public through reverse mergers (RMs) versus initial public offerings (IPOs) in China. Using a manually assembled data set, we show that pre-listing RM firms are larger, more profitable, and less politically connected than pre-listing IPO firms. Chinese RM firms also have...

Persistent link: https://www.econbiz.de/10011979947

The effect of industry restructuring on peer firms

Holcomb, Alex; Mason, Paul - In: Journal of risk and financial management : JRFM 14 (2021) 5, pp. 1-25

We study the bond price reaction of a merged firms peers, in order to better understand how the market responds to a restructuring. We argue that a merger announcement may signal the possibility of a merger wave to the industry, and in doing so, increase the conditional probability that peer...

Persistent link: https://www.econbiz.de/10012534527

Reverse mergers, shell value, and regulation risk in Chinese equity markets

Lee, Charles M. C.; Qu, Yuanyu; Shen, Tao - 2017

Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China's IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding...

Persistent link: https://www.econbiz.de/10011873081

Creditor Rights, Claims Enforcement, and Bond Returns in Mergers and Acquisitions

Renneboog, Luc - 2016

By means of an international sample of cross-border mergers and acquisitions (M&As) involving firms with outstanding Eurobonds from the US, Europe, and other countries around the world, we show that bond performance around M&A announcements is sensitive to cross-country differences in creditor...

Persistent link: https://www.econbiz.de/10012996646

The removals of anti-takeover provisions and CEO inside debt-equity ratio changes

Nguyen, Phuong Lan - 2020

I document evidence that 525 S&P 1500 companies that remove anti-takeover provisions (``ATPs") in period 2009 …

Persistent link: https://www.econbiz.de/10012847803

Deconstructing Private Equity Buyout Valuations

Reddy, Bobby V. - 2022

Private equity grows from strength-to-strength, with 2021 being a record year for private equity buyouts. The success of private equity is dependent upon making large returns on investment. Partly, success is derived from growing acquired companies, making acquired companies more efficient, and...

Persistent link: https://www.econbiz.de/10013491944

The Cost of Pride : Why do Firms from Developing Countries Bid Higher?

Hope, Ole-Kristian - 2010

Using an extensive panel of cross-border M&A transactions between 1990 and 2007, we find that firms from developing countries (versus those from developed countries) bid higher on average to acquire assets in developed countries. We are interested in why these higher bids occur. We find that...

Persistent link: https://www.econbiz.de/10013149313

The Misvaluation Curse in Mergers and Acquisitions

Pereiro, Luis E. - 2015

When corporate acquirers become self-mystified by an overly optimistic picture of potential merger gains, they end up trapped in high-sided valuations, overbid and eventually overpay for targets — and so, destroy their shareholder's value. But there is a flip side too: pessimistic acquirers...

Persistent link: https://www.econbiz.de/10013029116

Post-merger returns in frontier markets, or how we learned to stop worrying and love the acquirers

Zaremba, Adam; Szyszka, Adam; Płotnicki, Michał; … - In: Journal of business economics and management 19 (2018) 1, pp. 96-109

This study presents the results from a comprehensive out-of-sample test of long-run returns following mergers and acquisitions (M&As). Using a unique sample from 23 frontier markets of almost 800 transactions conducted during the years 1992 to 2016, we implement both cross-sectional tests and...

Persistent link: https://www.econbiz.de/10012174722