In this paper, we develop a novel theory of cross-border mergers and acquisitions. Firms can choose between different … modes of foreign market access: exporting, greenfield FDI, and cross-border M&A. Our theory is based on three key ideas …. Third, capabilities are traded in a merger market. We address two questions: (1) what are the characteristics of firms that …

Using merger documents filed with the SEC from 1994 to 2018, we show that being selected by investment banks as …’ informational advantage as well as their ability to facilitate future takeover transactions, appear to contribute to peers … merger filings. A portfolio that longs peers and shorts non-peers matched for industry and size earns up to 15.6% alpha in …

associated with the merger. We call these transactions "liquidity mergers," since their main purpose is to reallocate liquidity …

control. I find bundled repurchase announcements significantly increase the announcer’s likelihood of becoming a takeover …

observed premium, implying M&A event studies greatly understate merger gains. More broadly, since 1990 takeover premiums … acquisition gains into firms' stock prices long before a takeover. We estimate 10% of a typical target's pre-deal price is … attributable to general merger anticipation. The unobserved (anticipated) portion of the merger premium is roughly one-third of the …