Hot and cold merger markets |
| |
| Authors: | N K Chidambaran Kose John Zhaoyun Shangguan Gopala Vasudevan |
| |
| Institution: | (1) Department of Finance & Business Economics, Fordham University, 1790 Broadway, New York, NY 10023, USA;(2) Department of Finance, New York University, 44 West 4th Street, New York, NY 10012, USA;(3) Department of Accounting and Finance, School of Business, Robert Morris University, Moon Township, PA, USA;(4) Department of Accounting and Finance, Charlton College of Business, University of Massachusetts, 285 Old Westport Road, Dartmouth, MA, USA;; |
| |
| Abstract: | We study mergers and acquisition during the period from 1988 to 2005 and examine the impact of merger market intensity, i.e.,
merger waves, on the means of payment and the returns to target and acquirer shareholders. We use two proxies to measure the
intensity of the merger market—the number of mergers in the trailing 12-month period prior to a merger and the total dollar
volume of mergers in the trailing 12-month period prior to a merger—and use these measures to define hot and cold merger markets.
We find that stock financing is more common after a stock price run-up for the acquiring firm and in hot merger markets. We
also find that the acquisition premium is larger in hot merger markets. Returns to acquiring company shareholders are lower
for stock financed mergers and are lower when merger markets are intense. Our results are consistent with the predictions
of the behavioral theory for merger waves. |
| |
| Keywords: | |
| 本文献已被 SpringerLink 等数据库收录！ |
|
