Stylized facts suggest that strategic acquirers can pay for synergies, while private equity (PE) firms cannot because of the missing operating fit with the portfolio company. However, if PE firms initiate buy-and-build strategies, there is potential for an operating fit between the portfolio...

Using a global sample of 26,444 M&A transactions, we empirically investigate the main drivers of serial acquirer takeover performance, focusing on the benefits of organizational learning and the detriments of post-merger integration (PMI) problems. Taking single acquirers as a control group, we...

This paper investigates the development of earnings quality for a sample of 5,817 firm years during the period between 1997 and 2006 using seven different measures (accounting- and market-based). As a result, overall earnings quality of German firms improves over time. However, the measures of...

We empirically investigate the impact of diversification on the likelihood of being acquired. Our analysis is based on more than 24,000 firm years from all regions for the period between 2001 and 2008. We find that conglomerates are significantly less likely to be acquired and bid premiums paid...

We empirically investigate the impact of diversification on a special form of corporate investment -- corporate acquisitions. Our analysis is based on more than 30,000 firm years in a worldwide sample from 2001 to 2008. We find that conglomerates make significantly less acquisitions than stand...

This paper analyzes the combined effect of inflation and taxes on firm value, taking real growth of the firm's investment opportunities into account. Based on a simple model of the firm, our results highlight a hitherto neglected effect of real growth upon firm value. We find real growth,...

We are interested in the effect of capital income taxes upon security prices when investors face locally segmented stock markets and a global bond market. Therefore, we analyze an equilibrium model of an economy with binomial uncertainty, an exogenous risk-free interest rate and a representative...

Venture capital often involves complex equity contracts, which affect the allocation of cash flows among shareholdings at an exit liquidation. To facilitate economic impact analysis, we structure exit relevant preferential rights by their economic impact in a two-dimensional framework. Based...

In his recent article quot;Valuation with or without personal income taxesquot; Richter analyzes the impact of introducing income taxes into the calculus of corporate valuation. His major result is that, if correctly specifying the model, the income tax rate is only of minor importance for...