University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence

Petmezas, D, Golubov, A and Travlos, Nikolaos (2015) Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence Review of Finance.

Full text not available from this repository.


We contribute to the debate on whether stock-financed acquisitions destroy value for shareholders. A stock-financed acquisition is a joint takeover/equity-issue event. Using seasoned equity offering announcement returns, we estimate through linear prediction and propensity-score matching the share price drop that stock acquirers experience due to the financing choice. Net of this effect, stock-financed acquisitions are not value destructive, and the method of payment generally has no further explanatory power in the cross-section of acquirer returns. Our evidence is largely inconsistent with the agency costs of overvalued equity hypothesis.

Item Type: Article
Divisions : Surrey research (other units)
Authors :
Golubov, A
Date : 11 April 2015
DOI : 10.1093/rof/rfv009
OA Location :
Related URLs :
Depositing User : Symplectic Elements
Date Deposited : 16 May 2017 15:36
Last Modified : 24 Jan 2020 15:03

Actions (login required)

View Item View Item


Downloads per month over past year

Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800