کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5084486 1477908 2016 12 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
The earnout structure matters: Takeover premia and acquirer gains in earnout financed M&As
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
The earnout structure matters: Takeover premia and acquirer gains in earnout financed M&As
چکیده انگلیسی
In this article, based on both parametric and non-parametric methods, we provide a robust solution to the long-standing issue on how earnouts in corporate takeovers are structured and how their structure influences the takeover premia and the abnormal returns earned by acquirers. First, we quantify the effect of the terms of earnout contract (relative size and length) on the takeover premia. Second, we demonstrate how adverse selection considerations lead the merging firms to set the initial payment in an earnout financed deal at a level that is lower than, or equal to, the full deal payment in a comparable non-earnout financed deal. Lastly, we show that while acquirers in non-earnout financed deals experience negative abnormal returns from an increase in the takeover premia, this effect is neutralised in earnout financed deals.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: International Review of Financial Analysis - Volume 45, May 2016, Pages 283-294
نویسندگان
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