A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
- Topic classification is ongoing.
- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
Your search
Topic
Publication year
Corporate Takeover Bids, Methods of Payment, and Bidding Firms' Stock Returns.
Resource type
Author/contributor
- Travlos, Nickolaos G (Author)
Title
Corporate Takeover Bids, Methods of Payment, and Bidding Firms' Stock Returns.
Abstract
This study explores the role of the method of payment in explaining common stock returns of bidding firms at the announcement of takeover bids. The results reveal significant differences in the abnormal returns between common stock exchanges a nd cash offers. The results are independent of the type of takeover b id, i.e., merger or tender offer, and of bid outcomes. These findings supported by analysis of nonconvertible bonds, are attributed mainl y to signaling effects and imply that the inconclusive evidence of ea rlier studies on takeovers may be due to their failure to control for the method of payment.
Publication
The Journal of Finance
Volume
42
Issue
4
Pages
943-63
Date
1987-09
Citation
Travlos, N. G. (1987). Corporate Takeover Bids, Methods of Payment, and Bidding Firms’ Stock Returns. The Journal of Finance, 42, 943–963.
Journals
Topic
Link to this record