Sold Below Value? Why Takeover Offers Can Have Negative Premiums
نویسندگان
چکیده
منابع مشابه
Sold below Value? Why Some Targets Accept Very Low and Even Negative Takeover Premiums
Although many studies acknowledge negative premiums, there exists no theoretical or dedicated empirical analysis of the phenomenon. In our sample of 1,937 US mergers (1995 to 2011), 8.4 percent of all targets received o ers with negative premiums where the initial bid undercuts the pre-announcement market price. We theoretically show that target overvaluation, market liquidity and `hidden earno...
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Yes. We modify the calendar-time portfolio regressions approach to measure the abnormal returns of a takeover portfolio composed exclusively of successful bidders and targets from 1963 to 1995. This technique balances the announcement-period effects against the alleged post-announcement drift that is commonly thought to accompany takeovers. By using a GARCH(1,1) error specification, we overcome...
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ژورنال
عنوان ژورنال: Financial Management
سال: 2017
ISSN: 0046-3892
DOI: 10.1111/fima.12200