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Cash-Rich Acquirers Do Not Always Make Bad Acquisitions : New Evidence

Gao, Ning - 2018

Cash-rich acquirers on average perform better than their cash-poor counterparts. This observation is driven by financially constrained acquirers and by the deals made between the 1990s and 2000s. It is robust to alternative measures of financial constraints, to both the short term and the long...

Persistent link: https://www.econbiz.de/10012936514

Fire-Sale Acquisitions and Intra-Industry Contagion

Oh, Seungjoon - 2018

This paper investigates how the combined effects of target firm- and industry-level distress affect acquisition outcomes through the fire-sale channel. I show that distressed targets are sold at discounts when the target industry is in distress. Consistent with the Shleifer and Vishny model, the...

Persistent link: https://www.econbiz.de/10012938339

Tapping into Financial Synergies : Alleviating Financial Constraints Through Acquisitions

Williamson, Rohan - 2018

The paper examines whether firms are able to use acquisitions to ease their financial constraints. The results show that acquisitions do ease financing constraints for constrained acquirers. Relative to unconstrained acquires, financially constrained firms are more likely to use undervalued...

Persistent link: https://www.econbiz.de/10012938513

The Value of CEOs' Supply Chain Experience : Evidence from Mergers and Acquisitions

Fich, Eliezer M. - 2018

Acquirer CEOs with experience in the target's industry supply chain (‘supply chain CEOs') are associated with wealth effects of first-order importance: they earn 1% higher merger announcement returns. Conversely, their targets get a lower share of the merger gains. Acquisitions by supply chain...

Persistent link: https://www.econbiz.de/10012940252

The Economics of Law Enforcement : Quasi-Experimental Evidence from Corporate Takeover Law

Dissanaike, Gishan - 2020

This paper examines the impact of takeover law enforcement on corporate acquisitions. We use the European Takeover … Directive as a natural experiment, which harmonizes takeover law across countries, while leaving its enforcement to the … find that acquirer returns increase in countries with improvements in takeover law, driven by better target selection and …

Persistent link: https://www.econbiz.de/10012822536

Do Merges and Acquisitions Create Value for Shareholders?

S. Alkhalaf, Abdulmuhsen - 2020

This paper investigates whether M&A create value for the firm and its shareholders. Using data on M&A announcement made by publicly listed firms in the United States in 2003, it conducts a standard event study by calculating the cumulative abnormal return around [-1, 0, +1], where -1 is the one...

Persistent link: https://www.econbiz.de/10012823920

Are Third-Party Fundamental Valuations Relevant in Public-Company Takeovers?

Shaffer, Matthew - 2020

, summarized in a “fairness opinion,” before accepting a takeover offer. Critics argue that these valuations are not relevant for … which a target's pre-deal market price will not provide directors with the information required to assess a takeover offer …

Persistent link: https://www.econbiz.de/10012826884

Takeover, Distress, and Equity Issuance : Evidence from Korea

Cho, Euna - 2019

We study the motive and the economic effects of takeover in Korea, which has not been actively studied due to … relation to financial distress, and that some companies tend to be targeted repeatedly. However, after the takeover, the …

Persistent link: https://www.econbiz.de/10012867437

SPACs : Post-Merger Survival

Vulanovic, Milos - 2017

This paper studies how institutional characteristics of Specified Purpose Acquisition Companies (SPACs) are related to their post-merger survival. SPACs are unique financial firms that conduct the IPO with the solely purpose to use the proceeds to acquire another private company. Paper finds...

Persistent link: https://www.econbiz.de/10012969005

Fueling the Buyout Machine : Fundraising in Private Equity

Loos, Robert - 2017

This paper analyzes the impact of performance, investment-firm-related, and macroeconomic variables on fundraising activities in private equity (PE). We use a novel, backward-looking approach to link current to preceding funds, which allows for including several parallel predecessor funds in our...

Persistent link: https://www.econbiz.de/10012969612