Liquid Stock as an Acquisition Currency (CEIBS Working Paper, No. 018/2020/FIN, 2020)

Sheng Huang, Johan Maharjan, Vikram Nanda, Nishant Dass

科研成果: 工作论文

82 下载量 (Pure)

摘要

We examine how stock liquidity affects acquisitions. We hypothesize that liquidity enhances acquirer stock as an acquisition currency, especially when the target is relatively less liquid. As hypothesized, more liquid firms are more likely to make acquisitions and the difference in stock liquidity between acquirer and target firms increases payment with stock, reduces acquisition premiums, and improves acquirer announcement returns in equity deals. To exploit benefits of liquidity, firms take steps to improve stock liquidity prior to stock acquisitions. Our empirical identification relies on policy initiatives that exogenously increase stock liquidity.
源语言英语
准备中 - 1 1月 2020

Source

China Europe International Business School (CEIBS)

关键词

  • Decimalization
  • Mergers and Acquisitions
  • Stock Liquidity

指纹

探究 'Liquid Stock as an Acquisition Currency (CEIBS Working Paper, No. 018/2020/FIN, 2020)' 的科研主题。它们共同构成独一无二的指纹。

引用此