|
Bidder and target size effects in M&A are not driven by overconfidence or agency problems
Schneider, Christoph
;
Spalt, Oliver
|
Document Type:
|
Article
|
|
Year of publication:
|
2021
|
|
The title of a journal, publication series:
|
Critical Finance Review
|
|
Volume:
|
tba
|
|
Issue number:
|
tba
|
|
Page range:
|
tba
|
|
Place of publication:
|
Hanover, Mass.
|
|
Publishing house:
|
Now Publishers
|
|
ISSN:
|
2164-5744 , 2164-5760
|
|
Related URLs:
|
|
|
Publication language:
|
English
|
|
Institution:
|
Business School > ABWL, Finanzwirtschaft u. Finanzmarktinstitutionen (Spalt 2019-)
|
|
Subject:
|
330 Economics
|
|
Classification:
|
JEL:
G34,
G14,
|
|
Keywords (English):
|
mergers and acquisitions, size effects, scaling, proxy variables
|
|
Abstract:
|
The impact of size variables on bidder announcement returns can be decomposed into two effects, the "size as proxy effect" which was the focus of the prior M&A literature, and a "scaling effect" which magnifies per-dollar value created in a given deal. Using data of US takeovers from 1981 to 2014, we document that small bidders make better acquisitions than large bidders when they acquire non-public firms, but worse acquisitions when they acquire public firms, which is inconsistent with size as proxy explanations (e.g., size proxying for overconfidence of a firm's managers or agency problems). The pattern is consistent with scaling, because value created for bidders is on average negative for public target deals, but positive for non-public target deals. Scaling creates additional predictions for target size, relative size, and international M&A deals we show are borne out by the data.
|
 |
Dieser Datensatz wurde noch nicht in die Unibibliographie aufgenommen, es ist eine Unveröffentlichte Publikation. Diese Publikation als "Jetzt erschienen" melden. |
 Search Authors in
Actions (login required)
 |
Show item |
|
|
