The Choice of Payment Method in European Mergers and Acquisitions
Top Cited Papers
- 3 May 2005
- journal article
- Published by Wiley in The Journal of Finance
- Vol. 60 (3) , 1345-1388
- https://doi.org/10.1111/j.1540-6261.2005.00764.x
Abstract
We study merger and acquisition (M&A) payment choices of European bidders for publicly and privately held targets in the 1997–2000 period. Europe is an ideal venue for studying the importance of corporate governance in making M&A payment choices, given the large number of closely held firms and the wide range of capital markets, institutional settings, laws, and regulations. The tradeoff between corporate governance concerns and debt financing constraints is found to have a large bearing on the bidder's payment choice. Consistent with earlier evidence, we find that several deal and target characteristics significantly affect the method of payment choice.Keywords
This publication has 42 references indexed in Scilit:
- Related LendingThe Quarterly Journal of Economics, 2003
- Why Has IPO Underpricing Changed Over Time?SSRN Electronic Journal, 2002
- Insider Lending and Bank Ownership: The Case of RussiaJournal of Comparative Economics, 2001
- Home Bias at Home: Local Equity Preference in Domestic PortfoliosThe Journal of Finance, 1999
- Corporate Cash Reserves and AcquisitionsThe Journal of Finance, 1999
- Timing, investment opportunities, managerial discretion, and the security issue decisionPublished by Elsevier ,1999
- Managerial Ownership, the Method of Payment for Acquisitions, and Executive Job RetentionThe Journal of Finance, 1998
- Corporate financing and investment decisions when firms have information that investors do not haveJournal of Financial Economics, 1984
- Tobit models: A surveyJournal of Econometrics, 1984
- Determinants of corporate borrowingJournal of Financial Economics, 1977