Publication: Stock market driven acquisitions
Open/View Files
Date
2003
Published Version
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier BV
The Harvard community has made this article openly available. Please share how this access benefits you.
Citation
Shleifer, Andrei, and Robert W. Vishny. 2003. Stock Market Driven Acquisitions. Journal of Financial Economics 70, no. 3: 295–311. doi:10.1016/s0304-405x(03)00211-3.
Research Data
Abstract
We present a model of mergers and acquisitions based on stock market misvaluations of the combining firms. The key ingredients of the model are the relative valuations of the merging firms and the market’s perception of the synergies from the combination. The model explains who acquires whom, the choice of the medium of payment, the valuation consequences of mergers, and merger waves. The model is consistent with available empirical findings about characteristics and returns of merging firms, and yields new predictions as well.
Description
Other Available Sources
Keywords
takeover, synergy, merger
Terms of Use
This article is made available under the terms and conditions applicable to Other Posted Material (LAA), as set forth at Terms of Service