Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/74872
DC Field | Value | Language |
---|---|---|
dc.contributor | School of Accounting and Finance | en_US |
dc.creator | Li, L | en_US |
dc.creator | Tong, WHS | en_US |
dc.date.accessioned | 2018-03-29T09:34:06Z | - |
dc.date.available | 2018-03-29T09:34:06Z | - |
dc.identifier.issn | 0927-5398 | en_US |
dc.identifier.uri | http://hdl.handle.net/10397/74872 | - |
dc.language.iso | en | en_US |
dc.publisher | Elsevier | en_US |
dc.rights | © 2017 Elsevier B.V. All rights reserved. | en_US |
dc.rights | © 2017. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_US |
dc.rights | The following publication Li, L., & Tong, W. H. (2018). Information uncertainty and target valuation in mergers and acquisitions. Journal of Empirical Finance, 45, 84-107 is available at https://doi.org/10.1016/j.jempfin.2017.09.009. | en_US |
dc.subject | Acquirer abnormal return | en_US |
dc.subject | Bid premium | en_US |
dc.subject | Information uncertainty | en_US |
dc.subject | Valuation multiple | en_US |
dc.title | Information uncertainty and target valuation in mergers and acquisitions | en_US |
dc.type | Journal/Magazine Article | en_US |
dc.identifier.spage | 84 | en_US |
dc.identifier.epage | 107 | en_US |
dc.identifier.volume | 45 | en_US |
dc.identifier.doi | 10.1016/j.jempfin.2017.09.009 | en_US |
dcterms.abstract | We examine how a target's information uncertainty level affects an acquirer's valuation of the target and the acquirer's gain realized from the transaction. Based on a simple perpetual discounted cash flow model, we argue that the valuation will be lower for a target with higher information uncertainty and acquiring a target with high information uncertainty can potentially create value for an acquirer's shareholders. The empirical findings lend support to our arguments. Specifically, we observe that a target's valuation multiple obtained from an acquirer is negatively correlated with the target's information uncertainty level. An acquirer's announcement return is negatively correlated with the valuation multiple given to the target but positively correlated with the target's information uncertainty level. The results are robust against various measurements of valuation multiples and information uncertainty. | en_US |
dcterms.accessRights | open access | en_US |
dcterms.bibliographicCitation | Journal of empirical finance, Jan. 2018, v. 45, p. 84-107 | en_US |
dcterms.isPartOf | Journal of empirical finance | en_US |
dcterms.issued | 2018-01 | - |
dc.identifier.scopus | 2-s2.0-85034100925 | - |
dc.description.validate | 201803 bcma | en_US |
dc.description.oa | Accepted Manuscript | en_US |
dc.identifier.FolderNumber | AF-0133 | - |
dc.description.fundingSource | Others | en_US |
dc.description.fundingText | UGC TRS grant T31-717/12-R | en_US |
dc.description.pubStatus | Published | en_US |
dc.identifier.OPUS | 6798158 | - |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Tong_Information_Uncertainty_Target.pdf | Pre-Published version | 1.21 MB | Adobe PDF | View/Open |
Page views
142
Last Week
1
1
Last month
Citations as of Apr 14, 2024
Downloads
90
Citations as of Apr 14, 2024
SCOPUSTM
Citations
9
Last Week
0
0
Last month
Citations as of Apr 19, 2024
WEB OF SCIENCETM
Citations
6
Last Week
0
0
Last month
Citations as of Apr 18, 2024
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.