Are Stock-for-Stock Acquirers of Unlisted Targets Really Less Overvalued?

Material TypeArticleLanguageEnglish
TitleAre 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. ...Paginationp 901-930
SubjectManagementDescriptorsFinance
Journal TitleFinancial management  
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