Merger waves: Are buyers following the herd or responding to structural queues?
While there has been a significant amount of research covering the causes of merger waves, few papers have rank ordered merger waves based on the causes nor sought to determine which rationale leads to higher bidder payouts. This paper seeks to fill this gap by examining a cross section of large mergers across most industries occurring over a 17 year period. I find that merger waves over this period are caused foremost by changing economic and regulatory conditions. It is the behavioral rationale of mispricing, however, that more often leads to higher bidder payouts or merger premiums among acquirers in merger waves.
1988 ◽
Vol 102
◽
pp. 71-73
Keyword(s):
1973 ◽
Vol 31
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pp. 252-253
1973 ◽
Vol 31
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pp. 698-699
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1971 ◽
Vol 29
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pp. 78-79
Keyword(s):
1978 ◽
Vol 36
(1)
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pp. 526-527
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1988 ◽
Vol 46
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pp. 504-505
1975 ◽
Vol 33
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pp. 240-241
Keyword(s):
1978 ◽
Vol 36
(1)
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pp. 70-71
1972 ◽
Vol 30
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pp. 568-569
Keyword(s):