Earnout deals: Method of initial payment and acquirers' gains

被引：19

作者：

Barbopoulos, Leonidas G. ^{[1
]}

Paudyal, Krishna ^{[2
]}

Sudarsanam, Sudi ^{[3
]}

机构：

[1] Univ Glasgow, Adam Smith Business Sch, Glasgow G12 8QQ, Lanark, Scotland

[2] Univ Strathclyde, Strathclyde Business Sch, Glasgow G4 0QU, Lanark, Scotland

[3] Cranfield Sch Management, Cranfield MK43 0AL, Beds, England

来源：

EUROPEAN FINANCIAL MANAGEMENT | 2018年 / 24卷 / 05期

关键词：

acquirers' gains; asymmetric information; earnout contracts; initial payment in earnout deals; ACQUISITIONS; MERGERS; INFORMATION; RETURNS; PERFORMANCE; TAKEOVERS; EXCHANGE; CHOICE; FIRMS;

D O I：

10.1111/eufm.12135

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Appendix A: The Variables and their Definitions We analyse the implications of initial payment methods in earnout deals on acquirers' gains. The results, which are robust to self-selection bias and alternative model specifications, reveal that earnout deals outperform non-earnout deals. The acquirers gain the most from earnout deals when both initial and deferred payments are in stocks. The positive wealth effect of the choice of initial payment method in earnout deals is more prominent in cross-border deals than in domestic deals. Overall, the earnout deals generate higher gains when both the initial and deferred payments help spread the risk between the shareholders of acquiring and target firms.

引用

页码：792 / 828

页数：37

共 22 条

[1] Determinants of earnout as acquisition payment currency and bidder's value gains [J].

Barbopoulos, Leonidas ;

Sudarsanam, Sudi .

JOURNAL OF BANKING & FINANCE, 2012, 36 (03) :678-694

[2] MEASURING SECURITY PRICE PERFORMANCE [J].

BROWN, SJ ;

WARNER, JB .

JOURNAL OF FINANCIAL ECONOMICS, 1980, 8 (03) :205-258

[3]

Burch T. R., 2012, Journal of Financial Research, V35, P211

[4] Earnouts: A study of financial contracting in acquisition agreements [J].

Cain, Matthew D. ;

Denis, David J. ;

Denis, Diane K. .

JOURNAL OF ACCOUNTING & ECONOMICS, 2011, 51 (1-2) :151-170

[5] Earnouts: The effects of adverse selection and agency costs on acquisition techniques [J].

Datar, S ;

Frankel, R ;

Wolfson, M .

JOURNAL OF LAW ECONOMICS & ORGANIZATION, 2001, 17 (01) :201-238

[6] Propensity score-matching methods for nonexperimental causal studies [J].

Dehejia, RH ;

Wahba, S .

REVIEW OF ECONOMICS AND STATISTICS, 2002, 84 (01) :151-161

[7] Information asymmetry and bidders' gains [J].

Draper, Paul ;

Paudyal, Krishna .

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2008, 35 (3-4) :376-405

[8] ASYMMETRIC INFORMATION AND THE MEDIUM OF EXCHANGE IN TAKEOVERS - THEORY AND TESTS [J].

ECKBO, BE ;

GIAMMARINO, RM ;

HEINKEL, RL .

REVIEW OF FINANCIAL STUDIES, 1990, 3 (04) :651-675

[9] Returns to acquirers of listed and unlisted targets [J].

Faccio, M ;

McConnell, JJ ;

Stolin, D .

JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2006, 41 (01) :197-220

[10] The choice of payment method in European mergers and acquisitions [J].

Faccio, M ;

Masulis, RW .

JOURNAL OF FINANCE, 2005, 60 (03) :1345-1388

← 1 2 3 →