Are small firms less vulnerable to overpriced stock offers?

• 成果类型: Article
• 署名作者: Vijh, Anand M.; Yang, Ke
• 署名单位: University of Iowa; Lehigh University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.05.003
• 发表日期: 2013
• 页码: 61-86
• 关键词: Firm size effect; Mergers and Acquisitions; Overvaluation; Opinion divergence; Equity issuance

摘要

We show an inverted-U relation between targetiveness (probability of being targeted) and firm size. However, this pattern describes stock offers and is more pronounced during hot markets characterized by higher stock valuations. For cash offers we find a negative and monotonic relation. These contrasting patterns suggest that small firms (in the bottom NYSE size quartile) are less vulnerable to overpriced stock offers. In addition, we find that the stock acquirers of small targets are less overvalued than those of large targets, and that the announcement returns are less negative for stock acquirers of small targets than for those of large targets. (c) 2013 Elsevier B.V. All rights reserved.