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dc.contributor.authorMataigne, Virginie
dc.contributor.authorDe Maeseneire, Wouter
dc.contributor.authorLuypaert, Mathieu
dc.date.accessioned2017-12-02T15:00:34Z
dc.date.available2017-12-02T15:00:34Z
dc.date.issued2018
dc.identifier.doi10.1080/13504851.2017.1332740
dc.identifier.urihttp://hdl.handle.net/20.500.12127/5774
dc.description.abstractThe level of acquisition premia is of paramount importance in light of the vast sums paid to target shareholders and the often disappointing returns realized by corporate buyers. In this letter, we focus on the impact of R&D investments by targets on the acquisition premium contingent upon the acquirer's financing choices. Based on a unique hand-collected sample of 407 listed European transactions, we find a positive effect of target R&D on premia paid. Yet, when acquirers finance the acquisition of an R&D intensive target with debt, the positive relation disappears. Consequently, we establish that financing sources affect bidding strategies of acquiring companies in case of difficult-to-value targets.
dc.language.isoen
dc.subjectMergers
dc.subjectResearch & Development (R&D)
dc.subjectAcquisitions
dc.subjectFinancing
dc.titleThe interplay between target firm R&D, acquirer debt financing and takeover premia
dc.identifier.journalApplied Economics Letters
dc.source.volume25
dc.source.issue7
dc.source.beginpage451
dc.source.endpage455
vlerick.knowledgedomainAccounting & Finance
vlerick.typearticleJournal article with impact factor
vlerick.vlerickdepartmentA&F
vlerick.vlerickdepartmentCMAB
dc.identifier.vperid151906
dc.identifier.vperid40574
dc.identifier.vperid132517
dc.identifier.vpubid7085
vlerick.publicationvalue.BB


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