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An Empirical Analysis of the Role of the Medium of Exchange in Mergers
Author(s) -
CARLETON WILLARD T.,
GUILKEY DAVID K.,
HARRIS ROBERT S.,
STEWART JOHN F.
Publication year - 1983
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1983.tb02503.x
Subject(s) - cash , business , empirical evidence , empirical research , mergers and acquisitions , financial economics , monetary economics , economics , finance , statistics , mathematics , philosophy , epistemology
In empirical studies of differences between firms which are acquired and those which are not, researchers typically divide firms into two groups‐acquired and nonacquired. In this paper, we argue that cash takeovers may be sufficiently different from noncash acquisitionst hat failure to distinguish between them may lead to inappropriateg eneralizations. We provide evidence from the mid 1970s that three categories of firms can be distinguished:n onacquireda, cquiredi n a cash takeover, and acquired in an exchange of securities.