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Do Firms Set Free Cash Free? Misallocation vs. Opportunism in Acquisitions

Sturgess, Jason - 2012

We examine the impact of excess cash on the decision and method of payment in acquisitions. Consistent with prior literature, we find that firms that have excess cash do make more acquisitions. However, those acquisitions frequently use stock as the method of payment. We investigate this finding...

Persistent link: https://www.econbiz.de/10013116318

The Dark Side of Diversity : An Empirical Examination of the Impact of Firm Diversity on Resource Allocation Efficiency in Multidivisional Firms

Tag, Mehmet - 2023

resource allocation efficiency to three forms of firm-level diversity: diversity in industry-specific knowledge, diversity in … multidivisional firms shows that resource allocation efficiency tends to decrease as diversity in either industry-specific knowledge … diversity in industry-specific investment opportunities and allocation efficiency weakens and may even turn positive when the …

Persistent link: https://www.econbiz.de/10014254535

Efficiency of Resource Allocation in Multibusiness Firms : Theory and Evidence

Tag, Mehmet - 2023

This chapter reviews the theoretical and empirical literature on the efficiency of resource allocation in multibusiness … firms. The chapter proceeds by discussing the differences between resource allocation in markets vs. firm hierarchies in … section 2. This discussion establishes the costs and benefits of internal resource allocation (i.e., allocation in …

Persistent link: https://www.econbiz.de/10014257331

Merger Deal Stage Fright and the Use of Earn-Outs

Nyombi, Andrew - 2017

accounting methods to be used and how they would be used, allocation of costs and expenses, dispute resolution mechanisms …

Persistent link: https://www.econbiz.de/10012973363

Why are Cash-Rich Firms More Likely to Pay for Acquisitions with Stock?

Pinkowitz, Lee - 2012

We examine why cash-rich firms prefer to use stock to make acquisitions. Consistent with prior literature, we find that cash-rich firms are more likely to attempt acquisitions than other firms. However, cash-rich acquirers are more likely to employ stock as the method of payment. We investigate...

Persistent link: https://www.econbiz.de/10013115768

Returns to Acquirers of Listed and Unlisted Targets : An Examination of Australian Bidders

Nguyen, Pascal - 2014

We analyze the market reaction to the announcement of takeover bids initiated by Australian public firms on private and …

Persistent link: https://www.econbiz.de/10013048623

Returns to Acquirers of Listed and Unlisted Targets : An Examination of Australian Bidders

Nguyen, Pascal - 2014

We analyze the market reaction to the announcement of takeover bids initiated by Australian public firms on private and …

Persistent link: https://www.econbiz.de/10013048624

Horse Picker or Right Jockey? An Examination of Private Equity Value Creation Through the Lens of Withdrawn Leveraged Buyouts

Liu, Ping - 2014

This paper examines the consequences of leveraged buyout (LBO) transactions through the lens of subsequently withdrawn transactions. Using the reason for LBO withdrawal and the unfavorable credit market movements during the period when the deal is in play to address the endogenous withdrawal...

Persistent link: https://www.econbiz.de/10013054181

Corporate takeovers : modern empirical developments

Eckbo, B. Espen - 2011

a review of actual takeover premiums and their determinants. It then showcases recent empirical contributions on topics … auctions cause fire-sales?), effects of deal protection devices (do termination agreements and poison pills affect takeover … premiums?), large shareholder voting on takeover outcomes (does institutional activism matter?), deal financing issues (does it …

Persistent link: https://www.econbiz.de/10008906523

Acquisition Decisions of Zero-Leverage Firms

Bae, Chang Suk - 2014

We provide evidence on whether zero-leverage firms make unique acquisition decisions in line with their unique leverage policies. We show that zero-leverage firms are more likely to acquire targets with low or zero leverage than they are to acquire other targets in order to maintain zero...

Persistent link: https://www.econbiz.de/10013046919