Corporate Acquisitions, Diversification, and the Firm's Life Cycle

• 成果类型: Article
• 署名作者: Arikan, Asli M.; Stulz, Rene M.
• 署名单位: University System of Ohio; Kent State University; Kent State University Salem; Kent State University Kent; National Bureau of Economic Research; University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12362
• 发表日期: 2016
• 页码: 139-194
• 关键词: initial public offerings; INTERNAL CAPITAL-MARKETS; valuation; COSTS

摘要

Agency theories predict that older firms make value-destroying acquisitions to benefit managers. Neoclassical theories predict instead that such firms make wealth-increasing acquisitions to exploit underutilized assets. Using IPO cohorts, we establish that, while younger firms make more related and diversifying acquisitions than mature firms, the acquisition rate follows a U-shape over firms' life cycle. Consistent with neoclassical theories, we show that acquiring firms have better performance and growth opportunities and create wealth through acquisitions of nonpublic firms throughout their life. Consistent with agency theories, older firms experience negative stock price reactions for acquisitions of public firms.