Firm value and investment policy around stock for stock mergers

被引：0

作者：

Bino A. ^{[1
]}

Pana E. ^{[2
]}

机构：

[1] Department of Finance, University of Jordan, Amman

[2] Department of Business Administration, Illinois Wesleyan University, Bloomington

来源：

Review of Quantitative Finance and Accounting | 2011年 / 37卷 / 2期

关键词：

Diversification; Internal capital markets; Mergers;

D O I：

10.1007/s11156-010-0201-4

中图分类号：

学科分类号：

摘要：

We study a sample of publicly traded firms that expand by acquiring other firms in pure, stock-for-stock mergers. After these mergers, we find that the diversification premium decreases for the acquiring firm due to having added a target firm trading at a discount. Furthermore, the acquiring firm experiences a decrease in investment opportunities and a decrease in leverage. This is an effect confined only to non-diversifying mergers. Our results indicate that the acquirer's investment efficiency at the firm level remains unchanged after the merger. © 2010 Springer Science+Business Media, LLC.

引用

页码：207 / 221

页数：14

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