Stock Market Reactions to Financing and Payment Decisions for European Mergers and Acquisitions

The Mergers & Acquisitions Market Trends and Stock Market of China

Since the 90s of last century, there is a substantial increase of the Chinese equity market and M&A market. In order to explain the phenomenon of the rapid development of Chinese M&A market, the paper introduced EMD method to divide the data into a number of cycle terms, and tried to use the stock market volatility information to explain the factors of Chinese M&A market. Specifically, M&A mark...

The choice of financing method in European mergers & acquisitions

We study the financing choices in a broad sample of 3864 mergers and acquisitions (M&A) by European bidders of publicly and privately held targets and over the period 1997-2000. Europe is an ideal venue for studying the importance of corporate governance in making M&A financing choices, given the large number of closely held firms. Furthermore, our dataset allows for a wide range of institution...

Do Banks Monitor Corporate Decisions? Evidence from Bank Financing of Mergers and Acquisitions

We examine whether banks, in providing financing for the deals, monitor firms mergers and acquisitions to the extent that will benefit acquirers shareholders. Inconsistent with the conventional theoretical argument, we do not find that bank-financed deals are associated with better stock or accounting performance than bond-financed deals or deals paid with internal cash. There is strong evidenc...

Learning by suing: stock market reactions to patent litigation decisions

International Mergers and Acquisitions and the Market for Lemons

We propose that the market for international acquisitions may be subject to a double “lemons problem”: because of information asymmetries firms acquired by international buyers tend to be poor performers compared to firms acquired by domestic buyers that again tend to perform worse than firms that are not acquired. We find support for these propositions by comparing international to domestic ac...