The choice of payment method in European mergers and acquisitions

• 成果类型: Article
• 署名作者: Faccio, M; Masulis, RW
• 署名单位: Vanderbilt University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2005.00764.x
• 发表日期: 2005
• 页码: 1345-1388
• 关键词: INVESTMENT OPPORTUNITIES; corporate-control; sample selection; voting-rights; INFORMATION; OWNERSHIP; exchange; MARKET; FIRMS; takeovers

摘要

We study merger and acquisition (M&A) payment choices of European bidders for publicly and privately held targets in the 1997-2000 period. Europe is an ideal venue for studying the importance of corporate governance in making M&A payment choices, given the large number of closely held firms and the wide range of capital markets, institutional settings, laws, and regulations. The tradeoff between corporate governance concerns and debt financing constraints is found to have a large bearing on the bidder's payment choice. Consistent with earlier evidence, we find that several deal and target characteristics significantly affect the method of payment choice.