Journal article
Are small firms less vulnerable to overpriced stock offers?
Journal of financial economics, Vol.110(1), pp.61-86
10/01/2013
DOI: 10.1016/j.jfineco.2013.05.003
Abstract
We show an inverted-U relation between targetiveness (probability of being targeted) and firm size. However, this pattern describes stock offers and is more pronounced during hot markets characterized by higher stock valuations. For cash offers we find a negative and monotonic relation. These contrasting patterns suggest that small firms (in the bottom NYSE size quartile) are less vulnerable to overpriced stock offers. In addition, we find that the stock acquirers of small targets are less overvalued than those of large targets, and that the announcement returns are less negative for stock acquirers of small targets than for those of large targets.
Details
- Title: Subtitle
- Are small firms less vulnerable to overpriced stock offers?
- Creators
- Anand M. Vijh - University of IowaKe Yang - Lehigh University
- Resource Type
- Journal article
- Publication Details
- Journal of financial economics, Vol.110(1), pp.61-86
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.jfineco.2013.05.003
- ISSN
- 0304-405X
- eISSN
- 1879-2774
- Language
- English
- Date published
- 10/01/2013
- Academic Unit
- Finance
- Record Identifier
- 9984380556002771
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