Please use this identifier to cite or link to this item: http://hdl.handle.net/1822/37383

TitleA theory on merger timing and announcement returns
Author(s)Pereira, Paulo J.
Rodrigues, Artur
KeywordsMergers
Merger terms
Timing
Uncertainty
Real Options
Event studies
Issue date2015
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Abstract(s)This paper develops a dynamic model for the timing and terms of mergers and acquisitions. In contrast to other models, we show that firms agree about the timing independently from how the merger surplus is shared. Firms agree on the timing and discuss the sharing rule of the merger surplus according to their bargaining power or some other exogenous factor. We also show that, under asymmetric information, the combination of surprises regarding merger timing and merger terms, can produce either negative or positive abnormal returns for the merging firms.
TypeWorking paper
URIhttp://hdl.handle.net/1822/37383
Publisher versionhttp://www.nipe.eeg.uminho.pt/Uploads/WP_2015/NIPE_WP_13_2015.pdf
Peer-Reviewedno
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

Files in This Item:
File Description SizeFormat 
NIPE_WP_13_2015.pdfA theory on merger timing and announcement returns712,41 kBAdobe PDFView/Open

Partilhe no FacebookPartilhe no TwitterPartilhe no DeliciousPartilhe no LinkedInPartilhe no DiggAdicionar ao Google BookmarksPartilhe no MySpacePartilhe no Orkut
Exporte no formato BibTex mendeley Exporte no formato Endnote Adicione ao seu ORCID