Manuscript Type: EmpiricalResearch Question/Issue: This paper investigates how firm financial characteristics and governance characteristics affect reverse takeovers' survival.Research Findings/Insights: Using a sample of reverse takeovers that took place during the 2000–2009 period in the...

We examine the impact of creditor control rights on corporate acquisitions. Nearly 75% of loan agreements include restrictions that limit borrower acquisition decisions throughout the life of the contract. Following a financial covenant violation, creditors use their bargaining power to tighten...

Corporate control has added value for an investor since it gives degrees of freedom about the use of assets, sources of finance, salaries, etc. On the other hand, real options create value through the flexibility associated to the ability to react to some relevant uncertainty. The process of...

A large proportion of acquisitions results in shareholder wealth destruction. This study examines who is responsible for allowing bad acquisitions. Using a sample of 349 tax-free, stock-for-stock, pooling acquisitions over 1993-2001, the announcement period abnormal returns of acquirers are...

We examine whether governance matters for acquisitions. Acquisitions are frequently beneficial to the CEO of the acquiring firm, but can often be value-destructive to acquirer shareholders and other stakeholders such as employees. We find that corporate governance does not appear to influence...

The paper establishes the salience of the target's 52-week high price as a reference price, while determining the offer premium in Indian merger & acquisition (tender offer) deals, after controlling for the regulatory requirements in India. The SEBI Regulation, Substantial Acquisition of Shares...

Numerous works have examined the finance-related implications of intellectual property that is generated internally or acquired through M&A activity. The transfer of intellectual property via the secondary market for patents has received less attention. This paper fills that gap by asking how...

We examine the role of non-venture private equity firms in the market for divested businesses, comparing targets bought by such firms to those bought by corporate acquirers. We argue that a combination of vigilant monitoring, high-powered incentives, patient capital and business independence...

Contingent future payments have gained a solid reputation as fundamental ingredients of business acquisition transactions. Earn-outs specifically are a species of contingent future payments that have proved helpful in a plethora of recent merger deals. An earn-out is payment for performance...

We examine whether M&A transactions between firms sharing a common lender differ in important ways from those without common lenders. Consistent with the idea that banks serve a positive matchmaking role, we find higher abnormal announcement returns for deals in which the bidder and target share...