The price of corporate liquidity: Acquisition discounts for unlisted targets

Journal of Financial Economics

Volumn 83, Issue 3, 2007, Pages 571-598

  Officer, Micah S ^a  

^a UNIVERSITY OF SOUTHERN CALIFORNIA   (United States)

Author keywords

Liquidity discounts; Marketability discounts; Private firms; Unlisted targets

Indexed keywords

EID: 33847226233     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2006.01.004     Document Type: Article

References (41)

1. Alford A. The effect of the set of comparable firms on the accuracy of the price-earnings valuation method. Journal of Accounting Research 30 (1992) 94-108
2. Altman E. Financial ratios, discriminant analysis, and the prediction of corporate bankruptcy. Journal of Finance 23 (1968) 589-609
3. Barry C., and Brown S. Differential information and security market equilibrium. Journal of Financial and Quantitative Analysis 20 (1985) 407-422
4. Bates T. Asset sales, investment opportunities, and the use of proceeds. Journal of Finance 60 (2005) 105-135
5. Berger P., and Ofek E. Diversification's effect on firm value. Journal of Financial Economics 37 (1995) 39-65
6. Boatsman J., and Baskin E. Asset valuation with incomplete markets. Accounting Review 56 (1981) 38-53
7. Brown D. Liquidity and liquidation: evidence from real estate investment trusts. Journal of Finance 55 (2000) 469-485
8. Brown D., James C., and Mooradian R. Asset sales by financially distress firms. Journal of Corporate Finance 1 (1994) 233-257
9. Faccio M., McConnell J., and Stolin D. Returns to acquirers of listed and unlisted targets. Journal of Financial and Quantitative Analysis 41 (2004) 197-220
10. Fuller K., Netter J., and Stegemoller M. What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions. Journal of Finance 57 (2002) 1763-1793
11. Gilson S., Hotchkiss E., and Ruback R. Valuation of bankrupt firms. Review of Financial Studies 13 (2000) 43-74
12. Hansen R. A theory for the choice of exchange medium in mergers and acquisitions. Journal of Business 60 (1987) 75-95
13. Harford J. What drives merger waves?. Journal of Financial Economics 77 (2005) 529-560
14. Hickman W. Corporate Bond Quality and Investor Experience (1958), National Bureau of Economic Research, New York
15. Jensen M. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review 76 (1986) 323-329
16. Jensen M., and Meckling W. Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of Financial Economics 3 (1976) 305-360
17. Kahle K., and Walkling R. The impact of industry classifications on financial research. Journal of Financial and Quantitative Analysis 31 (1996) 309-335
18. Kaplan S., and Ruback R. The valuation of cash flow forecasts: an empirical analysis. Journal of Finance 50 (1995) 1059-1093
19. Kaplan R., and Urwitz G. Statistical models of bond ratings: a methodological inquiry. Journal of Business 52 (1979) 231-261
20. Kim C. The effects of asset liquidity: evidence from the contract drill industry. Journal of Financial Intermediation 7 (1998) 151-176
21. Kim M., and Ritter J. Valuing IPOs. Journal of Financial Economics 53 (1999) 409-437
22. Kruse T. Asset liquidity and the determinants of asset sales by poorly performing firms. Financial Management 31 (2002) 107-129
23. Lang L., Poulsen A., and Stulz R. Asset sales, firm performance, and the agency costs of managerial discretion. Journal of Financial Economics 37 (1995) 3-37
24. Loderer C., Sheehan D., and Kadlec G. The pricing of equity offerings. Journal of Financial Economics 29 (1991) 35-57
25. Lowry M. Why does IPO volume fluctuate so much?. Journal of Financial Economics 67 (2003) 3-40
26. Martin K. The method of payment in corporate acquisitions, investment opportunities, and management ownership. Journal of Finance 51 (1996) 1227-1246
27. Moeller S., Schlingemann F., and Stulz R. Firm size and the gains from acquisitions. Journal of Financial Economics 73 (2004) 201-228
28. Myers S., and Majluf N. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 13 (1984) 187-221
29. Officer M. Termination fees in mergers and acquisitions. Journal of Financial Economics 69 (2003) 431-467
30. Officer M. Collars and renegotiation in mergers and acquisitions. Journal of Finance 59 (2004) 2719-2743
31. Opler T., Pinkowitz L., Stulz R., and Williamson R. The determinants and implications of corporate cash holdings. Journal of Financial Economics 52 (1999) 3-46
32. Poulsen, A., Stegemoller, M., 2005. Moving from private to public ownership: selling out to public firms vs. initial public offerings. Unpublished working paper. University of Georgia.
33. Pulvino T. Do asset fire sales exist? An empirical investigation of commercial aircraft transactions. Journal of Finance 53 (1998) 939-978
34. Ritter J. The costs of going public. Journal of Financial Economics 19 (1987) 269-281
35. Roll R. The hubris hypothesis of corporate takeovers. Journal of Business 59 (1986) 197-216
36. Schlingemann F., Stulz R., and Walkling R. Divestitures and the liquidity of the market for corporate assets. Journal of Financial Economics 64 (2002) 117-144
37. Schwert G. Markup pricing in mergers and acquisitions. Journal of Financial Economics 41 (1996) 153-192
38. Shleifer A., and Vishny R. Liquidation values and debt capacity. Journal of Finance 47 (1992) 1343-1366
39. Smith C. Alternative methods for raising capital: rights versus underwritten offerings. Journal of Financial Economics 5 (1977) 273-307
40. Smith C. Investment banking and the capital acquisition process. Journal of Financial Economics 15 (1986) 3-29
41. Wruck K. Equity ownership concentration and firm value: evidence from private equity financings. Journal of Financial Economics 23 (1989) 3-28