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This paper investigates the merger wave hypothesis for the US and the UK employing a Markov regime switching model. Using quarterly data covering the last thirty years, for the US, we identify the beginning of a merger wave in the mid 1990s but not the much-discussed 1980s merger wave. We argue...
Persistent link: https://www.econbiz.de/10002521615
This paper quantifies the degree of agency conflicts in acquiring firms. By estimating managerial valuations using a structural method and calculating shareholder valuations from stock market reactions to takeovers, I find that acquiring managers overvalue targets by 63% of target...
Persistent link: https://www.econbiz.de/10013109126
We propose a novel Markov regime-switching Poisson regression model with time-varying transition distributions to test existing theories on determinants of wave-like patterns in same-industry merger and acquisitions (M&As). We show that the dynamics and persistence of merger waves change...
Persistent link: https://www.econbiz.de/10013004551
predicts takeover outcomes. It shows that positive media content about the acquirer predicts takeover success. Relative to …
Persistent link: https://www.econbiz.de/10013008806
Present paper proposes an autoregressive time series model to study the behaviour of merger and acquire concept which is equally important as other available theories like structural break, detrending etc. The main motivation behind newly proposed merged autoregressive (M-AR) model is to study...
Persistent link: https://www.econbiz.de/10011948485
Previous work has mostly looked at how acquisitions affect firm-level outcomes. This paper investigates how acquisitions affect product-level outcomes in the context of the console video game industry. We model the effect of acquisitions on video games' innovativeness, quality, and sales...
Persistent link: https://www.econbiz.de/10012965765
The effect of severance pay on management behavior during a takeover battle is generally ambiguous. Yet, the severance …
Persistent link: https://www.econbiz.de/10009491061
-researched. The standard Inefficient Management Hypothesis suggests that more efficient managerial teams target less performing firms …
Persistent link: https://www.econbiz.de/10011299494
for mounting a critique of the use of management and control systems by global corporations. It provides General Electric …'s takeover of the Italian company Nouvo Pignone as an instance. The systems are an essential element in the expansionary … generic management and control systems into the firms it acquires runs afoul of a Levinasian ethics. That many large global …
Persistent link: https://www.econbiz.de/10013160457
claim that the threat of takeover which they pose on the management of a poorly managed company is not only to their benefit …, but also to that of the target company in general, because the management will run the company better to maximize its … over the four fiscal years following such news. There is little evidence so far that the threat of a hostile takeover …
Persistent link: https://www.econbiz.de/10013154492