Does Stock Misvaluation Drive the Motivation for Takeovers?
碩士 === 國立臺灣大學 === 財務金融學研究所 === 96 === This paper uses pre-offer market valuations to evaluate motivation for takeovers under misvaluation theory. According to previous literature, the motives for merger and acquisition consist of synergy, agency, and hubris. We distinguish three hypotheses by lookin...
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| Format: | Others |
| Language: | en_US |
| Published: |
2008
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| Online Access: | http://ndltd.ncl.edu.tw/handle/12910536669335135678 |
| Summary: | 碩士 === 國立臺灣大學 === 財務金融學研究所 === 96 === This paper uses pre-offer market valuations to evaluate motivation for takeovers under misvaluation theory. According to previous literature, the motives for merger and acquisition consist of synergy, agency, and hubris. We distinguish three hypotheses by looking at the correlation between target and both acquirer wealth gains and total wealth gains. We found bidder valuations are related to means of payment and the motivation of merger, overvalued (higher P/B) bidders incline to merge by stock and have agency problem, provides evidence for the misvaluation hypothesis.
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