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Alternative Mechanisms for Corporate Control

Morck, Randall - 2013

change: internally precipitated management turnover, hostile takeover, and friendly takeover. We find that firms experiencing … is also weaker evidence that hostile takeover targets underperform their industry peers. We interpret this evidence as … relative to industry, but that an external challenge in the form of a hostile takeover is often required when the whole …

Persistent link: https://www.econbiz.de/10012754746

Mergers as Reallocation

Jovanovic, Boyan - 2012

We argue that takeovers have played a major role in speeding up the diffusion of new technology. The role that they play is similar to that of entry and exit of firms. We focus on and compare two periods: 1890-1930 during which electricity and the internal combustion engine spread through the...

Persistent link: https://www.econbiz.de/10012755892

The Opportunity Cost of Capital of Us Buyouts

Groh, Alexander Peter - 2010

This paper measures the risk-adjusted performance of US buyouts. It draws on a unique and proprietary set of data on 133 US buyouts between 1984 and 2004. For each of them we determine a public market equivalent that matches it with respect to its timing and its systematic risk. After a...

Persistent link: https://www.econbiz.de/10012759102

Why Do Private Acquirers Pay so Little Compared to Public Acquirers?

Bargeron, Leonce - 2010

We find that the announcement gain to target shareholders from acquisitions is significantly lower if a private firm instead of a public firm makes the acquisition. Non-operating firms like private equity funds make the majority of private bidder acquisitions. On average, target shareholders...

Persistent link: https://www.econbiz.de/10012760110

Cross-Border Acquisitions and Target Firms' Performance : Evidence from Japanese Firm-Level Data

Fukao, Kyoji - 2010

Using Japanese firm-level data for the period from 1994-2002, this paper examines whether a firm is chosen as an acquisition target based on its productivity level, profitability and other characteristics and whether the performance of Japanese firms that were acquired by foreign firms improves...

Persistent link: https://www.econbiz.de/10012760742

The Industry Life Cycle and Acquisitions and Investment : Does Firm Organization Matter?

Maksimovic, Vojislav - 2010

We examine the effect of financial dependence on acquisition and investment within existing industries by single-segment and conglomerate firms for industries undergoing different long run changes in industry conditions. Conglomerates and single-segment firms differ more in rates of...

Persistent link: https://www.econbiz.de/10012761342

Estimation and Identification of Merger Effects : An Application to Hospital Mergers

Dafny, Leemore S. - 2010

Advances in structural demand estimation have substantially improved economists' ability to forecast the impact of mergers. However, these models rely on extensive assumptions about consumer choice and firm objectives, and ultimately observational methods are needed to test their validity....

Persistent link: https://www.econbiz.de/10012762094

The Effects of Leveraged Buyouts on Productivity and Related Aspects of Firm Behavior

Lichtenberg, Frank R. - 2010

We investigate the economic effects of leveraged buyouts (LBOs) using large longitudinal establishment and firm-level Census Bureau data sets linked to a list of LBOs compiled from public data sources. About 5 percent, or 1100, of the manufacturing plants in the sample were involved in LBOs...

Persistent link: https://www.econbiz.de/10012763375

Executive Compensation and Incentives : the Impact of Takeover Legislation

Bertrand, Marianne - 2010

We investigate the impact of changes in states' anti-takeover legislation on executive compensation. We find both pay … which reduced takeover fears allow CEO's to skim more. We compute lower bounds on the relative risk aversion coefficients … increased pay for performance offsets some of the incentive reduction caused by lower takeover threats …

Persistent link: https://www.econbiz.de/10012763822

Banker Fees and Acquisition Premia for Targets in Cash Tender Offers : Challenges to the Popular Wisdom on Banker Conflicts

Calomiris, Charles W. - 2009

We analyze data on fees paid to investment bankers and acquisition premia paid for targets in cash tender offers. Our results are broadly consistent with the predictions of a benign view of the role of investment banks in advising acquisition targets. Fees to investment banks are correlated with...

Persistent link: https://www.econbiz.de/10012767558