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Crossing takeover premiums and mix of payment: An empirical test of contractual setting in M&A transactions

hal.structure.identifierDauphine Recherches en Management [DRM]
dc.contributor.authorde La Bruslerie, Hubert*
dc.date.accessioned2012-06-29T14:31:58Z
dc.date.available2012-06-29T14:31:58Z
dc.date.issued2012
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/9668
dc.language.isoenen
dc.subjectM&Aen
dc.subjecttakeover premiumen
dc.subjectmeans of paymenten
dc.subjectcontract settingen
dc.subject.ddc658.1en
dc.subject.classificationjelG.G3.G34en
dc.subject.classificationjelG.G3.G32en
dc.titleCrossing takeover premiums and mix of payment: An empirical test of contractual setting in M&A transactionsen
dc.typeCommunication / Conférence
dc.description.abstractenThe analyses of the tender offer premiums and of the means of payment should not be performed separately. In the empirical literature, these two variables are often considered independently, although they may have an endogenous relationship in a contractual setting. Using a sample of European M&As over the 2000-2010 decade, we show that these two variables are jointly set in a contractual empirical approach. The relationship between the percentage of cash and the offer premium is positive: higher premiums yield payments with more cash. We highlight that the payment choice is not a continuum between full cash and full share payments. Two different regimes of payment in M&A transactions are empirically characterized. We analyze the major determinants of M&A terms when the offer premium and the means of payment are jointly set. The underlying rationale of an asymmetry of information and a risk-sharing calculus is found to be significant in the setting of the agreement.en
dc.identifier.citationpages44en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelOrganisation et finances d'entrepriseen
dc.relation.conftitleBehavioural Finance Working Group/M&A Research Centre Conference : "Behavioural Finance and Cross Border Investments and Acquisitions"en
dc.relation.confdate2012-06
dc.relation.confcityLondresen
dc.relation.confcountryUnited Kingdomen
dc.description.halcandidateoui
dc.description.readershiprecherche
dc.description.audienceInternational
dc.relation.Isversionofjnlpeerreviewednon
hal.identifierhal-01505414*
hal.version1*
hal.update.actionupdateMetadata*
hal.author.functionaut


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