Target Firm-Specific Information and Acquisition Efficiency

• 成果类型: Article
• 署名作者: Martin, Xiumin; Shalev, Ron
• 署名单位: Washington University (WUSTL); New York University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2015.2371
• 发表日期: 2017
• 页码: 672-690
• 关键词: Mergers and acquisitions; EFFICIENCY; firm-specific information; Common value; Private value

摘要

This study investigates whether firm-specific information about targets improves acquisition efficiency. We define acquisition efficiency as the total surplus generated by an acquisition and measure it as the difference in the value of the merged firm and the sum of the two firms operating separately. We find a positive association between target firm-specific information and acquisition efficiency that is driven mainly by diversifying acquisitions. Additional evidence suggests that both the likelihood of the withdrawal of an announced acquisition and the likelihood of a future divestiture of a target decrease with target firm-specific information. Taken together, our findings suggest that the availability of this information improves merger and acquisitions efficiency.