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Valuation Waves and Merger Activity: The Empirical Evidence
16 references·16 citing·35 second hopsampled
Valuation Waves and Merger Activity: The Empirical Evidence (2004)Valuation Waves and Merger Activity: The …Stock market driven acquisitions (2003)Stock market driven acquisiti…The relevance of the value-relevance literature for financial accounting standard setting (2001)The relevance of the value-re…The relevance of the value relevance literature for financial accounting standard setting: another view (2001)The relevance of the value re…New Evidence and Perspectives on Mergers (2001)New Evidence and Perspectives…Capital markets research in accounting (2001)Capital markets research in a…The Boundaries of Financial Reporting and How to Extend Them (1999)The Boundaries of Financial R…Have Financial Statements Lost Their Relevance? (1999)Have Financial Statements Los…Changes in the value-relevance of earnings and book values over the past forty years (1997)Changes in the value-relevanc…Value-relevance of nonfinancial information: The wireless communications industry (1996)Value-relevance of nonfinanci…The impact of industry shocks on takeover and restructuring activity (1996)The impact of industry shocks…Agency costs of free cash flow, corporate finance, and takeovers (1996)Agency costs of free cash flo…Valuation and Clean Surplus Accounting for Operating and Financial Activities* (1995)Valuation and Clean Surplus A…Tobin's Q and the Gains from Takeovers (1991)Tobin's Q and the Gains from …Managerial performance, Tobin's Q, and the gains from successful tender offers (1989)Managerial performance, Tobin…Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Agency Costs of Free Cash Flo…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Corporate social responsibility and market efficiency: Evidence from ESG and misvaluation measures (2021)Corporate social responsibili…The Life Cycle of Corporate Venture Capital (2019)The Life Cycle of Corporate V…The effects of institutional investor objectives on firm valuation and governance (2017)The effects of institutional …Acquisitions driven by stock overvaluation: Are they good deals? (2013)Acquisitions driven by stock …Multiperiod corporate default prediction—A forward intensity approach (2012)Multiperiod corporate default…Corporate Innovations and Mergers and Acquisitions (2011)Corporate Innovations and Mer…Behavioral Corporate Finance: An Updated Survey (2011)Behavioral Corporate Finance:…CEO decision horizon and firm performance: An empirical investigation (2010)CEO decision horizon and firm…Behavioral and Rational Explanations of Stock Price Performance around SEOs: Evidence from a Decomposition of Market-to-Book Ratios (2010)Behavioral and Rational Expla…Multinationals as Arbitrageurs: The Effect of Stock Market Valuations on Foreign Direct Investment (2008)Multinationals as Arbitrageur…Bidding strategies and takeover premiums: A review (2008)Bidding strategies and takeov…Behavioural Finance: A Review and Synthesis (2007)Behavioural Finance: A Review…Merger Momentum and Investor Sentiment: The Stock Market Reaction to Merger Announcements* (2006)Merger Momentum and Investor …Wealth Destruction on a Massive Scale? A Study of Acquiring-Firm Returns in the Recent Merger Wave (2004)Wealth Destruction on a Massi…Collars and Renegotiation in Mergers and Acquisitions (2004)Collars and Renegotiation in …Behavioral Corporate Finance: A Survey (2004)Behavioral Corporate Finance:…CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)On Persistence in Mutual Fund Performance (1997)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Dividend Policy, Growth, and the Valuation of Shares (1961)Toward an Implied Cost of Capital (2001)Expected EPS and EPS Growth as Determinantsof Value (2005)The cost of capital, corporation finance and the theory of investment (2008)GROWTH, BETA AND AGENCY COSTS AS DETERMINANTS OF DIVIDEND PAYOUT RATIOS (1982)Two Agency-Cost Explanations of Dividends (1984)Corporate performance and managerial remuneration (1985)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)What Do We Know about Capital Structure? Some Evidence from International Data (1995)A Survey of Corporate Governance (1997)Corporate financing and investment decisions when firms have information that investors do not have (1984)Common risk factors in the returns on stocks and bonds (1993)What Do Returns to Acquiring Firms Tell Us? Evidence from Firms That Make Many Acquisitions (2002)Firm size and the gains from acquisitions (2004)Who makes acquisitions? CEO overconfidence and the market's reaction☆ (2008)The Cross-Section of Expected Stock Returns (1992)An Empirical Evaluation of Accounting Income Numbers (1968)FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968)Positive Accounting Theory (1985)International Accounting Standards and Accounting Quality (2008)Judgment under Uncertainty: Heuristics and Biases (1974)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Econometrics of Event Studies**We thank Espen Eckbo, Jon Lewellen, Adam Kolasinski, and Jay Ritter for insightful comments, and Irfan Safdar and Alan Wancier for research assistance. (2007)Driven to Distraction: Extraneous Events and Underreaction to Earnings News (2009)Investor Inattention and Friday Earnings Announcements (2009)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)The financial reporting environment: Review of the recent literature (2010)Understanding earnings quality: A review of the proxies, their determinants and their consequences (2010)Costs of Equity and Earnings Attributes (2004)Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)
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References

  • 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers17,216 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1996Agency costs of free cash flow, corporate finance, and takeovers9,308 cited
  • 2001New Evidence and Perspectives on Mergers2,803 cited
  • 2001Capital markets research in accounting2,575 cited
  • 1995Valuation and Clean Surplus Accounting for Operating and Financial Activities*2,224 cited
  • 2003Stock market driven acquisitions2,093 cited
  • 2001The relevance of the value relevance literature for financial accounting standard setting: another view1,961 cited
  • 1999The Boundaries of Financial Reporting and How to Extend Them1,930 cited
  • 1999Have Financial Statements Lost Their Relevance?1,917 cited
  • 1997Changes in the value-relevance of earnings and book values over the past forty years1,788 cited
  • 2001The relevance of the value-relevance literature for financial accounting standard setting1,741 cited
  • 1996The impact of industry shocks on takeover and restructuring activity1,512 cited
  • 1996Value-relevance of nonfinancial information: The wireless communications industry1,303 cited
  • 1989Managerial performance, Tobin's Q, and the gains from successful tender offers

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964 cited
  • 1991Tobin's Q and the Gains from Takeovers915 cited
  • Cited by

    • 2004Wealth Destruction on a Massive Scale? A Study of Acquiring-Firm Returns in the Recent Merger Wave479 cited
    • 2012Multiperiod corporate default prediction—A forward intensity approach365 cited
    • 2007Behavioural Finance: A Review and Synthesis346 cited
    • 2010CEO decision horizon and firm performance: An empirical investigation320 cited
    • 2021Corporate social responsibility and market efficiency: Evidence from ESG and misvaluation measures308 cited
    • 2008Bidding strategies and takeover premiums: A review306 cited
    • 2013Acquisitions driven by stock overvaluation: Are they good deals?286 cited
    • 2004Behavioral Corporate Finance: A Survey273 cited
    • 2006Merger Momentum and Investor Sentiment: The Stock Market Reaction to Merger Announcements*272 cited
    • 2011Corporate Innovations and Mergers and Acquisitions263 cited
    • 2017The effects of institutional investor objectives on firm valuation and governance254 cited
    • 2010Behavioral and Rational Explanations of Stock Price Performance around SEOs: Evidence from a Decomposition of Market-to-Book Ratios197 cited
    • 2008Multinationals as Arbitrageurs: The Effect of Stock Market Valuations on Foreign Direct Investment195 cited
    • 2011Behavioral Corporate Finance: An Updated Survey187 cited
    • 2019The Life Cycle of Corporate Venture Capital179 cited
    • 2004Collars and Renegotiation in Mergers and Acquisitions171 cited