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- Publisher Website: 10.1111/jofi.13018
- Scopus: eid_2-s2.0-85103537939
- WOS: WOS:000637086900001
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Article: Rent Extraction With Securities Plus Cash
Title | Rent Extraction With Securities Plus Cash |
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Authors | |
Issue Date | 2021 |
Publisher | Wiley-Blackwell Publishing, Inc. The Journal's web site is located at http://www.wiley.com/bw/journal.asp?ref=0022-1082 |
Citation | The Journal of Finance, 2021, v. 76 n. 4, p. 1869-1912 How to Cite? |
Abstract | In our target‐initiated theory of takeovers, a target approaches potential acquirers that privately know their standalone values and merger synergies, where higher synergy acquirers tend to have larger standalone values. Despite their information disadvantage, targets can extract all surplus when synergies and standalone values are concavely related by offering payment choices that are combinations of cash and equity. Targets exploit the reluctance of high‐valuation acquirers to cede equity claims, inducing them to bid more cash. When synergies and standalone values are not concavely related, sellers can gain by combining cash with securities that are more information‐sensitive than equities. |
Persistent Identifier | http://hdl.handle.net/10722/298735 |
ISSN | 2023 Impact Factor: 7.6 2023 SCImago Journal Rankings: 19.139 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Liu, T | - |
dc.contributor.author | Bernhardt, D | - |
dc.date.accessioned | 2021-04-12T03:02:40Z | - |
dc.date.available | 2021-04-12T03:02:40Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | The Journal of Finance, 2021, v. 76 n. 4, p. 1869-1912 | - |
dc.identifier.issn | 0022-1082 | - |
dc.identifier.uri | http://hdl.handle.net/10722/298735 | - |
dc.description.abstract | In our target‐initiated theory of takeovers, a target approaches potential acquirers that privately know their standalone values and merger synergies, where higher synergy acquirers tend to have larger standalone values. Despite their information disadvantage, targets can extract all surplus when synergies and standalone values are concavely related by offering payment choices that are combinations of cash and equity. Targets exploit the reluctance of high‐valuation acquirers to cede equity claims, inducing them to bid more cash. When synergies and standalone values are not concavely related, sellers can gain by combining cash with securities that are more information‐sensitive than equities. | - |
dc.language | eng | - |
dc.publisher | Wiley-Blackwell Publishing, Inc. The Journal's web site is located at http://www.wiley.com/bw/journal.asp?ref=0022-1082 | - |
dc.relation.ispartof | The Journal of Finance | - |
dc.rights | Submitted (preprint) Version This is the pre-peer reviewed version of the following article: [FULL CITE], which has been published in final form at [Link to final article using the DOI]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. Accepted (peer-reviewed) Version This is the peer reviewed version of the following article: [FULL CITE], which has been published in final form at [Link to final article using the DOI]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. | - |
dc.title | Rent Extraction With Securities Plus Cash | - |
dc.type | Article | - |
dc.identifier.email | Liu, T: tjliu@hku.hk | - |
dc.identifier.authority | Liu, T=rp02221 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1111/jofi.13018 | - |
dc.identifier.scopus | eid_2-s2.0-85103537939 | - |
dc.identifier.hkuros | 321982 | - |
dc.identifier.volume | 76 | - |
dc.identifier.issue | 4 | - |
dc.identifier.spage | 1869 | - |
dc.identifier.epage | 1912 | - |
dc.identifier.isi | WOS:000637086900001 | - |
dc.publisher.place | United States | - |