The choice of payment method in European mergers and acquisitions

Journal of Finance

Volumn 60, Issue 3, 2005, Pages 1345-1388

  Faccio, Mara ^a   Masulis, Ronald W ^a  

^a VANDERBILT UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 19944413032     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1540-6261.2005.00764.x     Document Type: Article

References (59)

1. Akerlof, George A., and Paul M. Romer, 1993, Looting: The economic underworld of bankruptcy for profit, Brookings Papers on Economic Activity 2, 1-73.
2. Allen and Overy, 2000, European Public Takeover Bids (Allen and Overy, London). Available at http://www.allenovery.com/.
3. Amemiya, Takeshi, 1984, Tobit models: A survey, Journal of Econometrics 24, 3-61.
4. Amihud, Yakov, Baruch Lev, and Nickolaos G. Travlos, 1990, Corporate control and the choice of investment financing: The case of corporate acquisitions, Journal of Finance 45, 603-616.
5. Andrade, Gregor, Mark Mitchell, and Erik Stafford, 2001, New evidence and perspectives on mergers? Journal of Economic Perspectives 15, 103-120.
6. Brown, David T., and Michael D. Ryngaert, 1991, The mode of acquisition in takeovers: Taxes and asymmetric information, Journal of Finance 46, 653-669.
7. Button, Maurice, and Sarah Bolton, 2000, A Practitioner's Guide to Takeovers and Mergers in the European Union (City & Financial Publishing, Old Woking, U.K.).
8. Caves, Richard E., 1982, Multinational Enterprise and Economic Analysis (Cambridge University Press, New York).
9. Chaney, Paul K., Linda M. Lovata, and Kirk L. Philipich, 1991, Acquiring firm characteristics and the medium of exchange, Quarterly Journal of Business and Economics 30, 55-69.
10. Choe, Hyuk, Ronald W. Masulis, and Vikram Nanda, 1993, Common stock offerings across the business cycle, Journal of Empirical Finance 1, 3-31.
11. Comment, Robert, and G. William Schwert, 1995, Poison or placebo? Evidence on the deterrence and wealth effects of modern antitakeover measures, Journal of Financial Economics 39, 3-43.
12. Coval, Joshua, and Tobias Moskowitz, 1999, Home bias at home: Local equity preference in domestic portfolios, Journal of Finance 54, 2045-2073.
13. DeAngelo, Harry, and Ronald W. Masulis, 1980, Optimal capital structure under corporate and personal taxation, Journal of Financial Economics 8, 3-29.
14. Dittmann, Ingolf, and Niels Ulbricht, 2003, When do firms abolish dual-class stocks, Working paper, Humboldt-Universität zu Berlin.
15. Dyck, Alexander, and Luigi Zingales, 2004, Private benefits of control: An international comparison, Journal of Finance 59, 537-600.
16. Eckbo, B. Espen, Ronald M. Giammarino, and Robert L. Heinkel, 1990, Asymmetric information and the medium of exchange in takeovers: Theory and tests, Review of Financial Studies 3, 651-675.
17. Eckbo, B. Espen, and Herwig Langohr, 1989, Information disclosure, method of payment, and takeover premiums: Public and private tender offers in France, Journal of Financial Economics 24, 363-404.
18. Economist Intelligence Unit, Country Commerce Reports, various years.
19. Faccio, Mara, and Larry H. P. Lang, 2002, The ultimate ownership of western European corporations, Journal of Financial Economics 65, 365-395.
20. Faccio, Mara, Larry H. P. Lang, and Leslie Young, 2001, Dividends and expropriation, American Economic Review 91, 54-78.
21. Fishman, Michael J., 1989, Preemptive bidding and the role of the medium of exchange in acquisitions, Journal of Finance 44, 41-57.
22. Franks, Julian R., Robert S. Harris, and Colin Mayer, 1988, Means of payment in takeovers: Results for the United Kingdom and the United States, in Alan J. Auerbach, ed.: Corporate Takeovers: Causes and Consequences (University of Chicago Press, Chicago).
23. French, Kenneth, and James Poterba, 1991, Investor diversification and international equity markets, American Economic Review 81, 222-226.
24. Fuller, Kathleen, Jeffry Netter, and Mike Stegemoller, 2002, What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions, Journal of Finance 57, 1763-1793.
25. Gadhoum, Yoser, Larry H. P. Lang, and Leslie Young, 2003, Who controls US?, Working paper, Chinese University of Hong Kong.
26. Ghosh, Aloke, and William Ruland, 1998, Managerial ownership, the method of payment for acquisitions, and executive job retention, Journal of Finance 53, 785-798.
27. Gilson, Ronald J., 1986, The Law and Finance of Corporate Acquisitions (The Foundation Press, Inc., Mineola, NY).
28. Grinblatt, Matt, and Matti Keloharju, 2001, How distance, language and culture influence stock-holdings and trades, Journal of Finance 56, 1053-1073.
29. Hansen, Robert G., 1987, A theory for the choice of exchange medium in mergers and acquisitions, Journal of Business 60, 75-95.
30. Harris, Milton, and Arthur Raviv, 1988, Corporate control contests and capital structure, Journal of Financial Economics 20, 55-86.
31. Hartford, Jarrad, 1999, Corporate cash reserves and acquisitions, Journal of Finance 54, 1969-1997.
32. Heckman, James J., 1976, The common structure of statistical models of truncation, sample selection, and limited dependent variables and a simple estimator for such models, Annals of Economic and Social Measurement 5, 475-492.
33. Heckman, James J., 1979, Sample selection bias as a specification error, Econometrica 47, 153-161.
34. Hovakimian, Armen, Tim Opler, and Sheridan Titman, 2001, The debt-equity choice, Journal of Financial and Quantitative Analysis 36, 1-25.
35. Jung, Kooyul, Yong-Cheol Kim, and René M. Stulz, 1996, Timing, investment opportunities, managerial discretion, and the security issue decision, Journal of Financial Economics 42, 159-185.
36. Korajczyk, Robert A., Deborah Lucas, and Robert MacDonald, 1991, The effect of information releases on the pricing and timing of equity issues, Review of Financial Studies 4, 695-708.
37. Krozner, Randall S., and Philip E. Strahan, 2001, Throwing good money after bad? Board connections and conflicts in bank lending, NBER Working paper no. 8694.
38. La Porta, Rafael, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert W. Vishny, 1998, Law and finance, Journal of Political Economy 106, 1113-1155.
39. La Porta, Rafael, Florencio Lopez-de-Silanes, and Guillermo Zamarripa, 2003, Related lending, Quarterly Journal of Economics 118, 231-268.
40. Laeven, Luc, 2001, Insider lending and bank ownership, Journal of Comparative Economics 29, 207-229.
41. Ljungqvist, Alexander, and William J. Wilhelm Jr., 2003, IPO pricing in the dot-com bubble, Journal of Finance 58, 723-752.
42. Loughran, Tim, and Jay Ritter, 2001, Why has IPO underpricing increased over time? Working paper, University of Notre Dame.
43. Lowry, Michelle, and G. William Schwert, 2002, IPO market cycles: Bubbles or sequential learning? Journal of Finance 57, 1171-1200.
44. Maddala, G. S., 1984, Limited-Dependent and Qualitative Variables in Econometrics (Cambridge University Press, Cambridge, U.K.).
45. Martin, Kenneth J., 1996, The method of payment in corporate acquisitions, investment opportunities, and management ownership, Journal of Finance 51, 1227-1246.
46. Morck, Randall, and Bernard Yeung, 1991, Why investors value multinationality, Journal of Business 64, 65-87.
47. Myers, Stewart C., 1977, Determinants of corporate borrowing, Journal of Financial Economics 5, 147-175.
48. Myers, Stewart C., and Nicholas S. Majluf, 1984, Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics 13, 187-221.
49. Nenova, Tatiana, 2003, The value of corporate votes and control benefits: A cross-country analysis, Journal of Financial Economics 68, 325-351.
50. Pajuste, Anete, 2003, What drives the unification of multiple class shares?, Working paper, Stockholm School of Economics.
51. Penningtons Solicitors, 1998, Mergers and Acquisitions: Buying a Business in Europe (European Law Group, available at http://www.elgroup.com/).
52. Prowse, Stephen, 1994, Corporate governance in an international perspective: A survey of corporate control mechanisms among large firms in the United States, the United Kingdom, Japan and Germany, BIS Economic papers, Basel.
53. Servaes, Henri, 1991, Tobin's Q and the gains from takeovers, Journal of Finance 46, 409-419.
54. Shleifer, Andrei, and Robert W. Vishny, 2003, Stock market driven acquisitions, Journal of Financial Economics 70, 295-311.
55. Stulz, René M., 1988, Managerial control of voting rights, Journal of Financial Economics 20, 25-54.
56. Travlos, Nickolaos G., 1987, Corporate takeover bids, method of payment, and bidding firms' stock returns, Journal of Finance 42, 943-963.
57. Wansley, James W., William R. Lane, and Ho C. Yang, 1987, Gains to bidder firms in cash and securities transactions, Financial Review 22, 403-414.
58. Wooldridge, Jeffry, 2002, Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).
59. Zhang, Pinghshun, 2003, What really determines the payment methods in M&A deals, Working paper, Manchester School of Management.