Parent Category: Article
Are Stock-for-Stock Acquirers of Unlisted Targets Really Less Overvalued?
|Title||Are Stock-for-Stock Acquirers of Unlisted Targets Really Less Overvalued? ||Author(S)||Henock Louis (Author) |
|Abstract|| Extant studies assume that targets’ private ownership mitigates acquirers’ incentives and opportunities to finance acquisitions with inflated stocks. This view stems from the observation that, although the average stock-for-stock acquirer's merger announcement return is negative when the target is listed, it is positive when the target is unlisted. Accordingly, extant studies often suggest that announcements of stock-for-stock acquisitions of unlisted targets convey favorable private information about the acquirers. However, an analysis of stock-for-stock acquirers’ stock performance, abnormal accruals, net operating assets, and insider trading suggests the opposite. ...||Pagination||p 901-930|
|Journal Title||Financial management|| || |
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