Earnouts in mergers: Agreeing to disagree and agreeing to stay

Journal of Business

Volumn 73, Issue 3, 2000, Pages 445-476

  Kohers, Ninon ^a   Ang, James ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0040191856     PISSN: 00219398     EISSN: None     Source Type: Journal    
DOI: 10.1086/209649     Document Type: Article

References (23)

1. Amihud, Y.; Lev, B.; and Travlos, N. G. 1990. Corporate control and the choice of investment financing: The case of corporate acquisitions. Journal of Finance 45 (June): 603-16.
2. Ang, J., and Kohers, N. 2000. The takeover market for privately-held companies: The U.S. experience. Cambridge Journal of Economics (in press).
3. Bradley M.; Desai, A.; and Kim, E. H. 1988. Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms. Journal of Financial Economics 21 (May): 3-40.
4. Brav, A.; Géczy C.; and Gompers, P. A. 1999. Is the abnormal return following equity issuances anomalous? Working Paper no. 02-99. Rodney L. White Center. Philadelphia: University of Pennsylvania.
5. Brav, A., and Gompers, P. A. 1997. Myth or reality? The long-run underperformance of initial public offerings: Evidence from venture and nonventure capital-backed companies. Journal of Finance 52 (December): 1791-1822.
6. Brown, D., and Ryngaert, M. 1991. The mode of acquisition in takeovers: Taxes and asymmetric information. Journal of Finance 46 (June): 653-69.
7. Chang, S. 1998. Takeovers of privately-held targets, methods of payment, and bidder returns. Journal of Finance 53 (April): 773-84.
8. Coff, R. W. 1997. Getting to "yes" when acquiring firms in human capital intense industries: Medium of exchange, diversification strategy, and impasse. Working paper. St. Louis: Washington University.
9. Datar, S.; Frankel, R.; and Wolfson, M. 1998. Earnouts: The effects of adverse selection on acquisition techniques. Working paper. Ann Arbor: University of Michigan.
10. Fishman, M. J. 1989. Preemptive bidding and the role of medium of exchange in acquisitions. Journal of Finance 44 (March): 41-57.
11. Hansen, R. S. 1987. A theory for the choice of exchange medium in mergers and acquisitions. Journal of Business 60 (January): 75-95.
12. Hirschey, M.; Slovin, M. B.; and Zaima, J. K. 1990. Bank debt, insider trading, and the return to corporate sell-offs. Journal of Banking and Finance 14 (March): 85-98.
13. Jensen, M. C., and Ruback, R. S. 1983. The market for corporate control: The scientific evidence. Journal of Financial Economics 11 (April): 5-50.
14. Kaplan, S. N., and Weisbach, M. S. 1992. The success of acquisitions: Evidence from divestitures. Journal of Finance 47 (March): 107-38.
15. Klein, A., and Hite, G. L. 1986. The timing and substance of divestiture announcements: Individual simultaneous, and cumulative effects. Journal of Finance 41 (July): 685-97.
16. La Porta, R.; Lopez-de-Silanes, F.; Shleifer, A.; and Vishny, R. 1997. Legal determinants of external finance. Journal of Finance 52 (July): 1131-50.
17. Loughran, T., and Ritter, J. 1995. The new issues puzzle. Journal of Finance 50 (March): 23-52.
18. Lyon, J. D.; Barber, B. M.; and Tsai, C. 1999. Improved methods for tests of long-run abnormal stock returns. Journal of Finance 54 (February): 165-90.
19. Malatesta, P. 1983. The wealth effects of merger activity and the objective functions of merging firms. Journal of Financial Economics 11 (April): 155-81.
20. Martin, K. 1996. The method of payment in corporate acquisitions, investment opportunities, and management ownership. Journal of Finance 4 (September): 1227-46.
21. Rau, P. R., and Vermaelen, T. 1998. Glamour, value and the post-acquisition performance of acquiring firms. Journal of Financial Economics 49 (August): 223-52.
22. Roll, R. 1986. The hubris hypothesis of corporate takeovers. Journal of Business 59 (April): 197-216.
23. Teoh, S. H.; Welch, I.; and Wong, T. J. 1998. Earnings management and the long-run market performance of initial public offerings. Journal of Finance 53:1935-69.