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Meier, Jean-Marie - 2020

Firms that buy assets in fire sales earn excess returns that are two percentage points higher than in regular acquisitions. The mechanism behind this result is the reduced bargaining power of the seller. We find no difference in real effects or in the combined returns for buyers and sellers...

Persistent link: https://www.econbiz.de/10012856597

The Post-Acquisition Returns of Stock Deals : Evidence of the Pervasiveness of the Asset Growth Effect

Mortal, Sandra - 2020

A growing literature finds that firm asset growth rates are negatively correlated subsequent stock returns. We show that the poor post-deal returns that have been documented for stock acquisitions are more precisely explained by the return effects associated with systematically larger asset...

Persistent link: https://www.econbiz.de/10012857143

Measuring Deal Premiums in Takeovers

Mulherin, J. Harold - 2020

We investigate whether the merger announcement dates provided in the Securities Data Corporation (SDC) database, a commonly used source in mergers and acquisitions (M&A) research, are handled correctly by researchers performing event studies to measure the wealth effects of mergers. We find that...

Persistent link: https://www.econbiz.de/10012857254

Dai, Yun - 2020

Despite their claimed advantages, toehold strategies have rarely been adopted in recent corporate takeovers and do not seem to increase acquirer returns. Are toeholds ineffective and becoming obsolete? We show that this is not the case. We find that toeholds are preferred for executing difficult...

Persistent link: https://www.econbiz.de/10012857275

Are Acquisitions Unique? Evidence of the Pedestrian Nature of Post-Merger Returns

Mortal, Sandra - 2020

This paper compares firm stock returns associated with acquired and organic (non-acquired) asset growth. Using a large sample of U.S. firms, we show that the poor post-deal returns that have been associated with acquisitions are not unique but similar to the returns of other firms that grow...

Persistent link: https://www.econbiz.de/10012857578

Operating Performance Improvements after Corporate Takeovers : Fact or Fallacy?

Amel-Zadeh, Amir - 2020

The paper investigates the post-takeover operating performance of a sample of the 50 largest mergers announced on the …

Persistent link: https://www.econbiz.de/10012857640

Law Firm Expertise and Shareholder Wealth

Schweizer, Denis - 2019

This paper examines the impact of law firm expertise on bidder and target shareholder wealth gains during mergers and acquisitions. After controlling for endogeneity in the matching between the mandating firm (bidder or target firm) and the law firm, we find that top-tier law firms increase the...

Persistent link: https://www.econbiz.de/10012858454

Lender Effects on Gains from Mergers and Acquisitions

Massoud, Nadia - 2019

This paper employs a new approach to identify merger and acquisition (M&A) transactions financed by syndicated loans and provides evidence that acquirer announcement returns are higher in loan-financed M&A deals than in other deals. Utilizing an instrumental variable approach and a quasi-natural...

Persistent link: https://www.econbiz.de/10012860859

Insider Trading and the Market Abuse Directive : Are Voluntary and Mandatory Takeover Bids Different?

Ferretti, Riccardo - 2019

trading during takeover bids. Exploiting the quasi-experimental setting provided by the introduction of the MAD, our event …

Persistent link: https://www.econbiz.de/10012861747

Abnormal Returns and Asymmetric Information Surrounding Strategic and Financial Acquisitions

Osborne, Sarah - 2019

Using United States takeover bids, we investigate the importance of information asymmetry in self-selection when … evaluating the abnormal returns of financial versus strategic takeover targets during a period of possible informed trade. Sample … selection bias due to differences in financial versus strategic takeover bids information environments is controlled for using …

Persistent link: https://www.econbiz.de/10012864318