Similar Search Results

Merger negotiations with stock market feedback

Betton, Sandra; Eckbo, B. Espen; Thompson, Rex; … - 2011 - Rev.

Do pre-offer target stock price runups increase bidder takeover costs? We present model-based tests of this issue … assuming runups are caused by signals that inform investors about potential takeover synergies. Rational deal anticipation …

Persistent link: https://www.econbiz.de/10009241644

Does mandatory shareholder voting prevent bad acquisitions?

Becht, Marco; Polo, Andrea; Rossi, Stefano - 2014

Shareholder voting on corporate acquisitions is controversial. In most countries acquisition decisions are delegated to boards and shareholder approval is discretionary, which makes existing empirical studies inconclusive. We study the U.K. setting where shareholder approval is imposed...

Persistent link: https://www.econbiz.de/10010387165

Corporate governance and the nature of takeover resistance

Carline, Nicholas F.; Linn, Scott C.; Yadav, Pradeep - 2014 - This version: March 23, 2014

We investigate the relation between corporate governance characteristics of hostile takeover targets and the choice to …

Persistent link: https://www.econbiz.de/10010337622

Corporate takeovers and economic efficiency

Eckbo, B. Espen - 2013

I review recent takeover research which advances our understanding of "who buys who" in the drive for productive … targets, the role of the supply chain and industrial networks in driving takeovers, target plant efficiency, and pre- and post-takeover … strongly averse to bidder toeholds, and the merger negotiation process strongly protects proprietary information. Takeover …

Persistent link: https://www.econbiz.de/10010254150

Initial offer precision and M&A outcomes

Hukkanen, Petri; Keloharju, Matti - 2015

Building on recent research in social psychology, this paper analyzes the link between the precision of initial cash offers and M&A outcomes. About one-half of the offers are made at the precision of one or five dollars per share, and an additional one-third at the precision of half dollar or...

Persistent link: https://www.econbiz.de/10011550930

Foreign acquisition and credit risk : evidence from the U.S. CDS market

Yilmaz, Umit - 2016 - This draft: May 31, 2016

This paper empirically analyses the effect of foreign block acquisitions on the U.S. target firms' credit risk as captured by their CDS. The involvement of foreign investors leads to a significant increase in the target firms' CDS spreads. This effect is stronger when foreign owners are...

Persistent link: https://www.econbiz.de/10011519062

Merger options and risk arbitrage

Van Tassel, Peter - 2016

Option prices embed predictive content for the outcomes of pending mergers and acquisitions. This is particularly important in merger arbitrage, where deal failure is a key risk. In this paper, I propose a dynamic asset pricing model that exploits the joint information in target stock and option...

Persistent link: https://www.econbiz.de/10011413251

Rumors of Mergers and Acquisitions : Market Efficiency and Markup Pricing

Chou, Hsin-I - 2011

analysis of takeover rumors of publically traded US companies from 1990 to 2008 shows that these two types of rumors can be … statistically distinguished by returns of rumored takeover targets before rumor publication. However, market responses to the rumors …, takeover premiums of sampled targets cannot be explained by markup pricing hypothesis although the hypothesis is supported by …

Persistent link: https://www.econbiz.de/10013133068

Informed Trading Around Merger and Acquisition Announcements : Evidence from the UK Equity and Options Market

Siougle, Georgia - 2011

This paper offers new evidence on informed trading around merger and acquisition announcements from the UK equity and options market. The analysis suggests that in about 25%-33% of events there is abnormal option trading volume during the month that precedes the announcement. Such evidence is...

Persistent link: https://www.econbiz.de/10013133655

The Apportionment of Takeover Wealth Gains Over Investor Groups

McAdam, Anna Christine - 2011

This paper identifies and apportions the wealth gain realisation from a takeover event for four investor groups, which … performance from the takeover occasion. The present study results thus qualify the extant takeover research conclusion that target … firm shareholders are the ‘winners' from a takeover occasion. This research concludes that it is the informed investor who …

Persistent link: https://www.econbiz.de/10013133659