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Customer Concentration of Targets in Mergers and Acquisitions

Cheng, Mei - 2020

We study how customer concentration of targets impacts the occurrence, structure and performance of M&A deals. We hypothesize that acquirers respond to customer concentration-related risk by (1) placing fewer bids for targets with greater customer concentration and (2) by using more stock...

Persistent link: https://www.econbiz.de/10012846095

Deconstructing Private Equity Buyout Valuations

Reddy, Bobby V. - 2022

Private equity grows from strength-to-strength, with 2021 being a record year for private equity buyouts. The success of private equity is dependent upon making large returns on investment. Partly, success is derived from growing acquired companies, making acquired companies more efficient, and...

Persistent link: https://www.econbiz.de/10013491944

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

Commonalities in Investment Strategy and the Determinants of Performance in Mutual Fund Mergers

Namvar, Ethan - 2014

This paper examines the determinants of cross-sectional variation in post-merger mutual fund performance. Mergers between funds with similar management objectives, as reflected by average portfolio book-to-market ratio, price-earnings ratio, beta and market capitalization values, outperform...

Persistent link: https://www.econbiz.de/10013065334

Acquisition Finance and Market Timing

Vermaelen, Theo - 2013

Bidders have an incentive to pay with stock when their shares are overvalued, but target firms should be reluctant to accept such overvalued payment. In a sample of 2,978 acquisitions, we find that stock payment is readily accepted only when the bidder can justify the financing decision in terms...

Persistent link: https://www.econbiz.de/10013075043

Firm Size, Information Acquistion and Price Efficiency

Zhao, Tian - 2009

We present a model in a competitive market where traders choose between a small and a large firm to acquire costly private information, but they also obtain free public information by observing equilibrium share prices. Our major finding is the existence of a noisy rational expectation...

Persistent link: https://www.econbiz.de/10013155894

Liquidity Externalities and Buyout Delisting Activity

Gaspar, Jose-Miguel - 2009

We study the impact on industry liquidity of delistings resulting from leveraged buyout activity. Using data on U.S. LBOs during the 1985-2008 period, we uncover evidence of negative liquidity externalities. We find that the liquidity of firms in the same industry as the LBO target drops during...

Persistent link: https://www.econbiz.de/10013157683

Securities Lending and Information Acquisition

Greppmair, Stefan - 2020

We show that mutual funds use information acquired by participating in the equity lending market to make portfolio allocation decisions. Using data from German mutual funds on their stock-level lending decisions, we find that funds lending shares are more likely to exit positions relative both...

Persistent link: https://www.econbiz.de/10012833591

Anticipating Acquirers

Macias, Antonio J. - 2020

Prior literature documents that acquirers earn declining returns to acquisitions as they continue acquiring. Using a novel typology of serial acquirers, we show that subsequent acquisitions by acquirers are predictable ex ante. Controlling for market anticipation, there is little evidence that...

Persistent link: https://www.econbiz.de/10012842975

Beyond the Rational Behavior : The Non-Financial Variables That Condition Shareholders' Actions on a Takeover

Mayoral, Rosa M. - 2017

This article provides experimental evidence that bidder and target shareholders of a takeover announcement exhibit …

Persistent link: https://www.econbiz.de/10012955588