Heterogeneous Market Responses and the Listing Effect in M&A

2012 ◽  
Vol 02 (02) ◽  
pp. 1250007 ◽  
Author(s):  
Qingzhong Ma ◽  
David A. Whidbee ◽  
Wei Zhang
Keyword(s):  
Asymmetric Information ◽  
Relative Size ◽  
Conventional Approach ◽  
Omitted Variables ◽  
Market Responses ◽  
Monitoring Mechanism ◽  
Method Of Payment ◽  
Pooled Samples

Unlisted acquisitions differ from listed ones in three important aspects: the possibility of forming blockholders, which substitute debt as a monitoring mechanism; the liquidity discount, which mitigates managerial hubris; and the distinct deal process through which two-sided asymmetric information is revealed. Due to these differences, same firm and deal characteristics could induce heterogeneous market responses, depending on the target listing status. We find that such heterogeneous responses exist in usual characteristics such as method of payment, relative size, acquirer size, leverage, and market-to-book ratios. After these heterogeneous responses are incorporated, the puzzling "listing effect" disappears. Our results also indicate that the conventional approach used to investigate pooled samples of listed and unlisted acquisitions is effectively misspecified due to omitted variables.

scholarly journals The premium on acquisition in South African mergers: An empirical evaluation

1988 ◽  
Vol 19 (4) ◽  
pp. 155-160 ◽  
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
S. J.M. Cleasby
Keyword(s):  
South African ◽  
Relative Size ◽  
Empirical Evaluation ◽  
The South ◽  
Popular Method ◽  
Cash Payment ◽  
Price Earnings Ratio ◽  
Target Company ◽  
Method Of Payment ◽  
Highly Correlated

In this paper both the premium paid on acquisition during a merger as well as the method by which the target companies stockholders are paid for their holding are examined. The results indicate that in the South African (S.A.) context the average premium paid on acquisition is of the order of 30-40% which is approximately the same as that paid on other major exchanges. Efforts to determine those accounting and market-related variables which were highly correlated with the premium on acquisition were relatively unsuccessful with only the price/ earnings ratio (and, to a lesser extent relative size) being significantly correlated with the premium. In both cases, the correlations were positive, indicating that a higher P/E ratio in the target company and/or a target company which is large relative to the acquirer will result in a higher premium on acquisition. Finally, the results indicate that a cash payment remains the most popular method of payment in South African mergers, followed by an equity swap. These results appear to be time independent.

Offer price, target ownership structure and post-listing liquidity of newly listed firms

2014 ◽  
Vol 40 (9) ◽  
pp. 928-950
Author(s):  
Tarek Miloud
Keyword(s):  
Asymmetric Information ◽  
Initial Public Offerings ◽  
Trading Volume ◽  
Explanatory Power ◽  
Relative Size ◽  
Vital Role ◽  
Market Liquidity ◽  
Ipo Underpricing ◽  
Content Type ◽  
Market Effect

Purpose – Initial public offerings (IPOs) underpricing is a world-wide phenomenon in the stock market. It is generally explained with asymmetric information and risk. The purpose of this paper is to complement these traditional explanations with a theory where investors also worry about the after-market illiquidity that may result from asymmetric information after the IPO. Design/methodology/approach – The model blends such liquidity concerns with adverse selection and risk as motives for underpricing and liquidity. The model's predictions are supported by evidence for 798 French IPOs realized between 1995 and 2008. Using various measures of liquidity, the author finds that expected after-market liquidity and liquidity risk are important determinants of IPO underpricing. Findings – The author finds evidence that less liquid the aftermarket is expected to be, and the less predictable its liquidity, the larger will be the IPO underpricing. Practical implications – The study provides empirical evidence that shares outstanding and author IPO characteristics play a vital role on post-IPO liquidity. According to the results obtained, three IPO characteristics, that is, relative size, blockholder and underpricing of offering have an explanatory for the liquidity and trading activity of the shares outstanding. It should be noted that this explanatory power is much greater before isolating the market effect. Nevertheless, given the evidence to show that these operations are executed during upmarket periods when trading volume is high, the non-exclusion of the market effect may attribute these variables with more explanatory power than they actually possess. Be that as it may, even after eliminating the market effect, their explanatory capacity is still considerable. Originality/value – The author has found that underpricing is negatively related to the breadth of shareholders but positively related to institutional shareholders after the IPO. When a company is underpriced, it is likely, on average, to have a higher breadth of shareholder base and lower concentration of large outside investors.

Interpreting HVEM of muscle-cell impulse networks

1992 ◽  
Vol 50 (1) ◽  
pp. 126-127
Author(s):  
Paul DeCosta ◽  
Kyugon Cho ◽  
Stephen Shemlon ◽  
Heesung Jun ◽  
Stanley M. Dunn
Keyword(s):  
Structural Analysis ◽  
Muscle Cell ◽  
Electron Micrographs ◽  
Relative Size ◽  
Automatic Classification ◽  
Nerve Fibers ◽  
Analysis Algorithm ◽  
Structural Networks

Introduction: The analysis and interpretation of electron micrographs of cells and tissues, often requires the accurate extraction of structural networks, which either provide immediate 2D or 3D information, or from which the desired information can be inferred. The images of these structures contain lines and/or curves whose orientation, lengths, and intersections characterize the overall network.Some examples exist of studies that have been done in the analysis of networks of natural structures. In, Sebok and Roemer determine the complexity of nerve structures in an EM formed slide. Here the number of nodes that exist in the image describes how dense nerve fibers are in a particular region of the skin. Hildith proposes a network structural analysis algorithm for the automatic classification of chromosome spreads (type, relative size and orientation).

The Quantitative Ultrastructure of the Heart Muscle of Japanese Quail by Hypergravitation, Hypodynamy and Combination

1990 ◽  
Vol 48 (3) ◽  
pp. 188-189
Author(s):  
Anton Bózner ◽  
Mikuláš Gažo ◽  
Jozef Dostál
Keyword(s):  
Japanese Quail ◽  
Heart Muscle ◽  
Relative Size ◽  
Combination Group ◽  
Control Group ◽  
Group V ◽  
Group Iii ◽  
Space Flights ◽  
Group I ◽  
Quantitative Ultrastructure

It is anticipated that Japanese quail /Coturnix coturnix japonica/ will provide animal proteins in long term space flights. Consequently this species of birds is of research interest of international space program INTERCOSMOS. In the year 1987 we reported on an experiment /2/ in which the effect of chronic acceleration of 2 G hypergravitation, the hypodynamy and the simultaneous effect of chronic acceleration and the location in the centre of the turntable of the centrifuge on the protein fractions in skeletal muscles was studied. The ultrastructure of the heart muscle was now in this experiments examined as well.Japanese quail cockerels, aged 48 days were exposed to 2 G hypergravitation /group IV/ in a 6,4 m diameter centrifuge, to hypodynamy /group III/ and their combination /group V/, respectively for 6 days / Fig.1/. The hypodynamy in group III was achieved by suspending the birds in jackets without contact the floor. The group II was located in the centre ofthe turntable of the centrifuge. The control group I. was kept under normal conditions. The quantitative ultrastructure of myocard was evaluated by the methods of Weibel/3/ - this enables to determine the number, relative size and volume of mitochondria volume of single mitochondria, defficiency of mitochondrial cristae and volume of myofibrils.

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