Acquisitions Driven By Stock Overvaluation: Are They Good Deals?

• المؤلفون الرئيسيون: FU, Fangjian, LIN, Leming, OFFICER, Micah
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2011
• الموضوعات: Mergers and acquisitions; Overvaluation; Operating performance; Agency costs; CEO compensation; Corporate Finance; Finance and Financial Management
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/3157; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4156/viewcontent/FuFJCFE_10_1.pdf

Overvaluation may motivate a firm to use its stock to acquire a target whose stock is not as overpriced (Shleifer and Vishny (2003)). Though hypothetically desirable, these acquisitions in practice create little, if any, value for acquirer shareholders. Two factors often impede value creation: payme...