Industry asset revaluations around public and private acquisitions

• 成果类型: Article
• 署名作者: Derrien, Francois; Fresard, Laurent; Slabik, Victoria; Valta, Philip
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; Universita della Svizzera Italiana; University of Bern; University of Geneva; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.10.003
• 发表日期: 2023
• 页码: 243-269
• 关键词: Merger & acquisitions; INFORMATION; Revaluation; stock returns; peers; Misvaluation

摘要

Revaluations of industry peers around horizontal acquisitions are negative when targets are private, but positive when they are public. We posit this revaluation spread arises because acquiring managers favor private targets when public firms are overvalued. Targets' ownership status thus conveys information about industry assets' misvaluation and triggers predictable revaluations. Supporting this idea, private acquisitions occur when private targets appear cheaper than public firms based on valuation multiples or the trading activity of industry insiders. The revaluation spread varies with overall market misvaluation, predicts future industry returns, and is unrelated to peers' and industries' fundamentals. (c) 2021 Elsevier B.V. All rights reserved.