Neural networks or the logit model? A comparison of each model's ability to predict the method of payment ln corporate acquisitions

This article examines various factors that may be involved in determining the method of payment in corporate acquisitions. Recently the topic of acquisitions has intensified has more and more companies seek to gain a competitive advantage through mergers with other firms. Numerous studies have been conducted that show that the method of payment has a significant effect on its stockholders. The objective of this study is to use neural networks in predicting the method of payment in corporate acquisitions and then to compare the results to a traditional legit model.