Klitzka, Michael ; He, Jianan ; Schiereck, Dirk (2021)
The rationality of M&A targets in the choice of payment methods.
In: Review of Managerial Science, 16 (4)
doi: 10.1007/s11846-021-00469-6
Artikel, Bibliographie
Dies ist die neueste Version dieses Eintrags.
Kurzbeschreibung (Abstract)
This study analyzes mergers and acquisitions (M&A) payment methods in large transactions of public U.S. acquirers between 2009 and 2016. While we find consistent with previous evidence that asymmetric information between acquirers and targets significantly influences the choice of M&A payment methods, we show that contrary to prevailing findings in the literature, acquirers cannot exploit their overvaluation through stock-financed M&A at targets’ disadvantage. In addition, when facing larger uncertainty in the counterparty’s valuation, a higher ratio of cash is applied in M&A payment. Our results document that both acquirers and targets are rational in choosing M&A payment methods.
| Typ des Eintrags: | Artikel |
|---|---|
| Erschienen: | 2021 |
| Autor(en): | Klitzka, Michael ; He, Jianan ; Schiereck, Dirk |
| Art des Eintrags: | Bibliographie |
| Titel: | The rationality of M&A targets in the choice of payment methods |
| Sprache: | Englisch |
| Publikationsjahr: | 2021 |
| Ort: | Berlin ; Heidelberg |
| Verlag: | Springer |
| Titel der Zeitschrift, Zeitung oder Schriftenreihe: | Review of Managerial Science |
| Jahrgang/Volume einer Zeitschrift: | 16 |
| (Heft-)Nummer: | 4 |
| DOI: | 10.1007/s11846-021-00469-6 |
| URL / URN: | https://link.springer.com/article/10.1007/s11846-021-00469-6 |
| Zugehörige Links: | |
| Kurzbeschreibung (Abstract): | This study analyzes mergers and acquisitions (M&A) payment methods in large transactions of public U.S. acquirers between 2009 and 2016. While we find consistent with previous evidence that asymmetric information between acquirers and targets significantly influences the choice of M&A payment methods, we show that contrary to prevailing findings in the literature, acquirers cannot exploit their overvaluation through stock-financed M&A at targets’ disadvantage. In addition, when facing larger uncertainty in the counterparty’s valuation, a higher ratio of cash is applied in M&A payment. Our results document that both acquirers and targets are rational in choosing M&A payment methods. |
| Freie Schlagworte: | Mergers and acquisitions (M&A), Choice of payment methods, Rational payment design, Equity overvaluation and misvaluation, Information asymmetry |
| Zusätzliche Informationen: | JEL Classification: G14 Mathematics Subject Classification: 91G50 Corporate finance (dividends, real options, etc.) |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Betriebswirtschaftliche Fachgebiete > Fachgebiet Unternehmensfinanzierung |
| Hinterlegungsdatum: | 14 Okt 2021 15:23 |
| Letzte Änderung: | 19 Jul 2024 07:44 |
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| Suche nach Titel in: | TUfind oder in Google |
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The rationality of M&A targets in the choice of payment methods. (deposited 02 Apr 2024 11:28)
- The rationality of M&A targets in the choice of payment methods. (deposited 14 Okt 2021 15:23) [Gegenwärtig angezeigt]
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