  |
|
|
||||
|
||||
Target-Firm Information Asymmetry and Acquirer Returns
Micah S. Officer Loyola Marymount University - Department of Finance and Computer Information Systems Annette B. Poulsen University of Georgia - Department of Banking and Finance Mike Stegemoller Texas Tech University - Rawls College of Business April 1, 2008 Review of Finance, Forthcoming Abstract: We show that acquirer returns are significantly higher in stock-swap acquisitions of difficult-to-value targets, as measured by R&D intensity and idiosyncratic return volatility. This finding contributes to an explanation of the determinants of, and value gains from, using stock as a method of payment. The effects of target-valuation uncertainty on both the method of payment and the market reaction to acquisitions are more likely to be apparent in samples of private acquisitions, and that these effects can be masked in samples of acquisitions of publicly held targets. Nevertheless, our results hold for publicly traded targets in multivariate analysis.
Keywords: Acquisitions, Private firms, Method of payment, Intangibles JEL Classifications: G34, G32 Working Paper SeriesDate posted: November 22, 2005 ; Last revised: July 30, 2008Suggested CitationContact Information
|
|
|||||||||||||||||||||||||
© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was served by apolloa 4 in 0.328 seconds.
One-Click Download
Facebook
Twitter
Digg
Del.icio.us
CiteULike
