Empirical Investigation of the medium of exchange in Mergers and Acquisitions
This paper examines the choice of payment methods in mergers and acquisition (M&A) and the associated post-acquisition performance based on a study of selected 129 transactions during 1990 and 2008. We find that the choice of payment methods is affected by a wide range of factors including com...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2010
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| Online Access: | https://eprints.nottingham.ac.uk/24026/ |
| _version_ | 1848792685243006976 |
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| author | REN, JIE |
| author_facet | REN, JIE |
| author_sort | REN, JIE |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper examines the choice of payment methods in mergers and acquisition (M&A) and the associated post-acquisition performance based on a study of selected 129 transactions during 1990 and 2008.
We find that the choice of payment methods is affected by a wide range of factors including company valuation, transaction size, management control, market expectation and stock valuation.
In addition, we also observe a significant relationship between payment methods and post-acquisition returns from a long-term perspective. Consistent with most previous evidence, we find that cash payment will contribute to the highest post-acquisition returns to the shareholders of the acquiring firms. On top of that, it is further explored that merger types also have impact on the post-acquisition performance. According to our results, only conglomerate acquisitions tend to contribute positive shareholders value; by contrast, horizontal and vertical mergers are highly unprofitable. |
| first_indexed | 2025-11-14T18:48:20Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-24026 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:48:20Z |
| publishDate | 2010 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-240262018-01-30T20:43:05Z https://eprints.nottingham.ac.uk/24026/ Empirical Investigation of the medium of exchange in Mergers and Acquisitions REN, JIE This paper examines the choice of payment methods in mergers and acquisition (M&A) and the associated post-acquisition performance based on a study of selected 129 transactions during 1990 and 2008. We find that the choice of payment methods is affected by a wide range of factors including company valuation, transaction size, management control, market expectation and stock valuation. In addition, we also observe a significant relationship between payment methods and post-acquisition returns from a long-term perspective. Consistent with most previous evidence, we find that cash payment will contribute to the highest post-acquisition returns to the shareholders of the acquiring firms. On top of that, it is further explored that merger types also have impact on the post-acquisition performance. According to our results, only conglomerate acquisitions tend to contribute positive shareholders value; by contrast, horizontal and vertical mergers are highly unprofitable. 2010 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24026/1/Dissertation-jie_ren%284095431%29.pdf REN, JIE (2010) Empirical Investigation of the medium of exchange in Mergers and Acquisitions. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | REN, JIE Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title | Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title_full | Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title_fullStr | Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title_full_unstemmed | Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title_short | Empirical Investigation of the medium of exchange in Mergers and Acquisitions |
| title_sort | empirical investigation of the medium of exchange in mergers and acquisitions |
| url | https://eprints.nottingham.ac.uk/24026/ |