| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5089712 | Journal of Banking & Finance | 2012 | 15 Pages |
Abstract
⺠We provide a rationale for the use of convertibles as the means of payment in M&As. ⺠Convertibles resolve information asymmetry on both the bidder and the target sides. ⺠Convertibles are used when the bidder and the target information asymmetry are high. ⺠Convertible deals have positive announcement returns for both bidders and targets. ⺠Convertible deals have higher bidder and lower target returns than cash/stock deals.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
John D. Finnerty, Jie Jiao, An Yan,