Purpose – Researchers suspect that the overvaluation of equity issuing acquirers is a major cause of their subsequent post-event underperformance. Definitive conclusions regarding this overpricing hypothesis have not been possible since indicators of overpricing such as the book-to-market...

Purpose – The primary purpose of this paper is to test the prediction that overpricing drives merger waves. Design/methodology/approach – The authors supplement proxies of overpricing from the existing literature such as subsequent under-performance, the form of consideration/financing and...

Purpose –Researchers suspect that the overvaluation of equity issuing acquirers is a major cause of their subsequent post-event underperformance. Definitive conclusions regarding this overpricing hypothesis have not been possible since indicators of overpricing such as the book-to-market ratio...

Purpose – The primary purpose of this paper is to test the prediction that overpricing drives merger waves. Design/methodology/approach – The authors supplement proxies of overpricing from the existing literature such as subsequent under‐performance, the form of consideration/financing and...