This paper presents a dynamic model of takeovers based on the stock market valuations of merging firms. The model incorporates competition and imperfect information and determines the terms and timing of takeovers by solving option exercise games between bidding and target shareholders. The implications of the model for returns to stockholders are consistent with the available evidence. In addi...

The model and related empirical examination in this paper demonstrate one reason why previous studies document both positive and negative correlations between exchange rate volatility and observed levels of foreign direct investment. Using a simple model of cross-border mergers and acquisitions, it argues that the source of the volatility is important in resolving the puzzle. An empirical analy...

The processes involved with mergers and acquisitions (M&As) are many, varied complex. M&A research practice needs a toolset that can apprehend complexity suggest ways forward. This paper shows the of constituents organizations at strategic level by building on natural-resource-based view (NRBV) resulting competences capabilities. In M&As, these resources capabilities managed through...