Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/14953
Title: Determinants and shareholder wealth effects of the sales method in acquisitions
Authors: Schlingemann, F
Wu, H 
Keywords: Acquisitions
Auctions
Negotiations
Sales method
Issue Date: 2015
Publisher: Elsevier
Source: Journal of banking and finance, 2015, v. 59, p. 469-485 How to cite?
Journal: Journal of banking and finance 
Abstract: We analyze the sales method for a sample of 575 acquisitions announced between 1998 and 2012 and find that targets choose auctions to maximize the target takeover premium through greater competition and to relax their financial constraints. Auctions, compared to negotiated deals, are associated with significantly higher target announcement returns, especially for relatively small targets. Bidder returns are positively related to auctions for bidders acquiring relatively small targets, not for the full sample. Taking into account size differences, we find that auctions, decrease target gains and increase bidder gains expressed in dollars.
URI: http://hdl.handle.net/10397/14953
ISSN: 0378-4266
EISSN: 1872-6372
DOI: 10.1016/j.jbankfin.2015.06.017
Appears in Collections:Journal/Magazine Article

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