Barbopoulos, Leonidas; Sudarsanam, Sudi - In: Journal of Banking & Finance 36 (2012) 3, pp. 678-694
We examine the wealth effects of a comprehensive sample of UK bidders offering contingent payment, or earnout, as consideration for their acquisitions. We show that bidders using earnout generate significantly higher announcement and post-acquisition value gains than bidders using non-earnout...