The merger wave that took place during the first phase of globalization, which lasted from 1895 to 1914, changed the industrial structure in Europe and the U.S. remarkably. Therefore, it is of great importance to assess whether mergers were successful during this period. Noteworthy, studies that...

Although many studies have acknowledged the existence of negative offer premiums, where the initial bid undercuts the target's pre-announcement market price, this phenomenon has remained unexplained. Negative premiums occur frequently and are no measurement error. We show theoretically and...