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- W2915002783 abstract "Why are repeat acquirers' early abnormal returns higher than those from later acquisitions? This paper argues that acquirers minimize integration and transaction costs by choosing an optimal target size. As acquirers get larger, they optimally choose targets of larger absolute size, but smaller relative size, leading to declining returns. Using a panel dataset of repeat acquirers over two decades, empirical tests support this argument. In contrast, I find no support for alternative explanations of declining returns based on hubris and diminishing opportunity sets, and only weak support for agency explanations. In addition, using new econometric techniques, I reject the popular theory that declining returns result from market anticipation of later deals." @default.
- W2915002783 created "2019-02-21" @default.
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- W2915002783 date "2008-01-01" @default.
- W2915002783 modified "2023-09-25" @default.
- W2915002783 title "The Returns to Repeat Acquirers" @default.
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- W2915002783 doi "https://doi.org/10.2139/ssrn.1311907" @default.
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