The underpricing of private targets

• 成果类型: Article
• 署名作者: Cooney, John W.; Moeller, Thomas; Stegemoller, Mike
• 署名单位: Texas Tech University System; Texas Tech University; Texas Christian University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2008.08.001
• 发表日期: 2009
• 页码: 51-66
• 关键词: Private acquisitions; Withdrawn IPOs; Valuation uncertainty

摘要

We examine acquisitions of private firms with valuation histories and find a positive relation between acquirer announcement returns and target valuation revisions. Similar to other studies, acquirer announcement returns are positive, on average. However, positive acquirer announcement returns are mainly driven by targets that are acquired for more than their prior valuation. This relation is consistent with pricing effects associated with target valuation uncertainty and behavioral biases in negotiation outcomes. (C) 2009 Elsevier B.V. All rights reserved.