The method of payment in corporate acquisitions, investment opportunities, and management ownership

• 成果类型: Article; Proceedings Paper
• 署名作者: Martin, KJ
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.2307/2329393
• 发表日期: 1996
• 页码: 1227-1246
• 关键词: free cash flow; capital structure; empirical-analysis; BIDDING FIRMS; EQUITY ISSUES; TOBINS-Q; takeovers; exchange; INFORMATION; returns

摘要

This article examines the motives underlying the payment method in corporate acquisitions. The findings support the notion that the higher the acquirer's growth opportunities, the more likely the acquirer is to use stock to finance an acquisition. Acquirer managerial ownership is not related to the probability of stock financing over small and large ranges of ownership, but is negatively related over a middle range. In addition, the likelihood of stock financing increases with higher pre-acquisition market and acquiring firm stock returns. It decreases with an acquirer's higher cash availability, higher institutional shareholdings and blockholdings, and in tender offers.