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Pandit, Shail - 2009

A large proportion of acquisitions results in shareholder wealth destruction. This study examines who is responsible for allowing bad acquisitions. Using a sample of 349 tax-free, stock-for-stock, pooling acquisitions over 1993-2001, the announcement period abnormal returns of acquirers are...

Persistent link: https://www.econbiz.de/10014046835

The 52-Week High Reference Price Effect on Indian Mergers and Acquisitions : Does the Regulatory Environment Matter?

Ranganathan, Kavitha - 2016

The paper establishes the salience of the target's 52-week high price as a reference price, while determining the offer premium in Indian merger & acquisition (tender offer) deals, after controlling for the regulatory requirements in India. The SEBI Regulation, Substantial Acquisition of Shares...

Persistent link: https://www.econbiz.de/10013005255

Patent Acquisition, Investment, and Contracting

Bowen III, Donald E. - 2017

Numerous works have examined the finance-related implications of intellectual property that is generated internally or acquired through M&A activity. The transfer of intellectual property via the secondary market for patents has received less attention. This paper fills that gap by asking how...

Persistent link: https://www.econbiz.de/10012967419

Who Does Private Equity Buy? Evidence on the Role of Private Equity From Buyouts of Divested Businesses

Kaul, Aseem - 2017

We examine the role of non-venture private equity firms in the market for divested businesses, comparing targets bought by such firms to those bought by corporate acquirers. We argue that a combination of vigilant monitoring, high-powered incentives, patient capital and business independence...

Persistent link: https://www.econbiz.de/10012971578

Bank Lenders as Matchmakers? When Acquirers and Targets Share a Common Lender

Fee, C. Edward - 2017

We examine whether M&A transactions between firms sharing a common lender differ in important ways from those without common lenders. Consistent with the idea that banks serve a positive matchmaking role, we find higher abnormal announcement returns for deals in which the bidder and target share...

Persistent link: https://www.econbiz.de/10012949251

Market Learning About the Stand-Alone Value of the Acquirer

Buti, Krisztina - 2019

This paper presents new empirical evidence suggesting that the market evaluates acquisition announcements in the context of the firm's investment policy. When a firm with superior prior internal investment purchases another, market participants often learn from the acquisition, that internal...

Persistent link: https://www.econbiz.de/10012903745

Limits to Arbitrage and Shareholder Gains in Corporate Acquisitions

Buti, Krisztina - 2019

The literature on corporate acquisitions reports a persistent empirical regularity: acquisition announcements by small bidders create greater shareholder value than those by large bidders. This paper presents evidence that greater shareholder gains to small bidders' announcements reflect...

Persistent link: https://www.econbiz.de/10012903980

Anti-Takeover Provisions and Investment Timing

Guthrie, Graeme - 2019

We show how directors can set the strength of a firm's anti-takeover provisions in order to influence the investment …-timing decision of a future empire-building CEO. The prospect of future hostile takeover attempts, which terminate the CEO's control … benefits if successful, affects the CEO's willingness to invest in low-value projects. If anti-takeover defenses are too strong …

Persistent link: https://www.econbiz.de/10012892376

The Informational Consequences of Good and Bad Mergers

Adra, Samer; Barbopoulos, Leonidas G. - 2021

M&As have informational consequences beyond their immediate effects on stock prices. We find that acquirers receiving a positive market reaction to their M&A announcements experience an increase in the richness of their information environment, consistent with the theoretical predictions of Dow...

Persistent link: https://www.econbiz.de/10013237862

Quos Custodiunt Custodes? Sponsor Reputation and Capital Structure Dynamics in Leveraged Buyouts

Shive, Sophie; Forster, Margaret - 2021

Leveraged buyouts allow for a separate identification of sponsor reputation and underlying firm quality and their effects on capital structure choices. In 616 U.S. LBOs for which we can reconstruct financing activity, we find that the average LBO issues an average of 1.16 additional debt...

Persistent link: https://www.econbiz.de/10013241555