Why do private acquirers pay so little compared to public acquirers?

Journal of Financial Economics

Volumn 89, Issue 3, 2008, Pages 375-390

  Bargeron, Leonce L ^a   Schlingemann, Frederik P ^a   Stulz, René M ^b   Zutter, Chad J ^a  

^a UNIVERSITY OF PITTSBURGH   (United States)

^b OHIO STATE UNIVERSITY   (United States)

Author keywords

Private equity acquisitions; Target abnormal returns

Indexed keywords

EID: 52049092036     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2007.11.005     Document Type: Article

References (22)

1. Aiken L.S., and West S.G. Multiple Regression: Testing and Interpreting Interactions (1991), Sage Publications, Newbury Park, CA
2. Amihud Y. Illiquidity and stock returns: cross-section and time-series effects. Journal of Financial Markets 5 (2002) 31-56
3. Bebchuck L.A., and Grinstein Y. Firm expansion and CEO pay. Harvard Law School Working Paper #53 (2007), Harvard University, Cambridge, MA
4. Berle Jr. A.A., and Means G.C. The Modern Corporation and Private Property (1932), MacMillan, New York
5. Betton S., and Eckbo B. Toeholds, bid jumps, and expected payoffs in takeovers. Review of Financial Studies 13 (2000) 841-882
6. Brown S., and Warner J. Using daily stock returns, the case of event studies. Journal of Financial Economics 14 (1985) 3-31
7. Burch T.R. Locking out rival bidders: the use of lockup options in corporate mergers. Journal of Financial Economics 60 (2001) 103-141
8. DeAngelo H., DeAngelo L., and Rice E.M. Going private: minority freezeouts and stockholder wealth. Journal of Law and Economics 27 2 (1984) 367-402
9. Harford J., and Li K. Decoupling CEO wealth and firm performance: the case of acquiring CEOs. Journal of Finance 62 (2007) 917-950
10. Harford, J., Jenter, D., Li, K., 2007. Conflicts of interests among shareholders: the case of corporate acquisitions. Unpublished working paper. University of Washington.
11. Hartzell J.C., Ofek E., and Yermack D. What's in it for me? CEOs whose firms are acquired. Review of Financial Studies 17 (2004) 37-61
12. Huang Y., and Walkling R. Target abnormal returns associated with acquisition announcements: payment, acquisition form, and managerial resistance. Journal of Financial Economics 19 (1987) 329-349
13. Jensen M. Agency costs of free cash flow, corporate finance and takeovers. American Economic Review 76 (1986) 323-329
14. Jensen M. Eclipse of the public corporation. Harvard Business Review 67 (1989) 61-75
15. Kaplan S. The effects of management buyouts on operating performance and value. Journal of Financial Economics 24 (1989) 217-254
16. Kothari S.P., and Warner J. Econometrics of event studies. In: Eckbo E. (Ed). Handbook of Corporate Finance vol. 1 (2007), Elsevier/North-Holland, Amsterdam 1-36
17. Lehn K., and Zhao M. CEO turnover after acquisitions: are bad bidders fired?. Journal of Finance 56 (2006) 1759-1811
18. Moeller S., Schlingemann F., and Stulz R. Firm size and the gains from acquisitions. Journal of Financial Economics 73 (2004) 201-228
19. Officer M. Termination fees in mergers and acquisitions. Journal of Financial Economics 69 (2003) 431-467
20. Schlingemann F.P., Stulz R.M., and Walkling R.A. Divestitures and the liquidity of the market for corporate assets. Journal of Financial Economics 64 (2002) 117-144
21. Schwert G. Markup pricing in mergers and acquisitions. Journal of Financial Economics 41 (1996) 153-192
22. Stulz R. Managerial control of voting rights: financing policies and the market for corporate control. Journal of Financial Economics 20 (1988) 25-54