Takeover rumors: Returns and pricing of rumored targets
نویسندگان
چکیده
منابع مشابه
Do Takeover Targets Overinvest?
I examine the capital expenditures of a sample of 700 takeover targets and firms that went private over the period 1972-1987. For the complete sample, I do not find evidence that takeover targets increase their capital expenditures over the fouryear period before the acquisition or that they overinvest in capital expenditures relative to several benchmarks. Subsample results provide some eviden...
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This study examines how takeover decisions are influenced by the quality of information in target firms’ earnings. We find that bidders are more likely to prefer negotiations in deals involving targets with poor earnings quality. Moreover, in such deals, earnings quality and takeover premiums are negatively related, suggesting that bidders obtain valuable private information through negotiation...
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This paper analyzes the impact of a takeover threat on information flows (or communication) within or across firms. We consider a long-term relationship between a firm and a privately informed trading partner, say a buyer. Both parties bargain over a price in each period and a takeover may take place. When takeovers are ruled out, having high bargaining power increases the firm’s likelihood to ...
متن کاملManagerial Performance, Bid Premiums, and the Characteristics of Takeover Targets
This paper tests the inefficient performance hypothesis and the pre-bid runup premium hypothesis of hostile takeovers. The long-term and short-term performance and the characteristics of friendly and hostile takeovers are compared. We find no indications of poor target performance over the five years prior to the takeover announcement. However, there is evidence that hostile takeovers do perfor...
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This study examines the potential of a selforganising map for classifying corporate takeover and merger targets using a range of financial information about companies. A sample of 200 US quoted companies, half which were merger or takeover targets and half which were not, are used to train and test the model. The best self-organised map correctly classified 94.8% of the firms in the training se...
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ژورنال
عنوان ژورنال: International Review of Financial Analysis
سال: 2015
ISSN: 1057-5219
DOI: 10.1016/j.irfa.2015.05.006