takes into account the Misvaluation Hypothesis. These latter two perspectives are similarly related to the subsequent …

cash payment when the firm has sufficient financial slack (is cash rich). The Misvaluation hypothesis suggests that … and/or the target is/are under-valued in the market. We found strong evidence which supports the Misvaluation hypothesis … Misvaluation hypothesis. In particular, the hedging portfolio strategy supports the long position of the acquiring firms (M …