This paper examines the motives underlying the payment method in corporate acquisitions. The findings support the notion that the higher the acquirer's growth opportunities, the more likely the acquirer is to use stock to finance an acquisition. Acquirer managerial ownership is not related to...

This paper provides evidence on the motives underlying the method of payment in corporate acquisitions. The findings support the notion that the higher a firm's growth opportunities, the more likely it is to use stock to finance an acquisition. In addition, the likelihood of stock financing...