Empirical Evidence of Overbidding in M&A Contests

Autor:	Eric de Bodt, Jean-Gabriel Cousin, Richard Roll
Rok vydání:	2018
Předmět:	Economics and Econometrics Curse 050208 finance 05 social sciences Bidding Test (assessment) Indirect evidence Empirical research Accounting 0502 economics and business Economics Econometrics Endogeneity 050207 economics Empirical evidence Finance
Zdroj:	Journal of Financial and Quantitative Analysis. 53:1547-1579
ISSN:	1756-6916 0022-1090
Popis:	Surprisingly few papers have attempted to develop a direct empirical test for overbidding in merger and acquisition contests. We develop such a test grounded on a necessary condition for profit-maximizing bidding behavior. The test is not subject to endogeneity concerns. Our results strongly support the existence of overbidding. We provide evidence that overbidding is related to conflicts of interest, but also some indirect evidence that it arises from failing to fully account for the winner’s curse.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::71a0c55db50801a080381e37274648b4 https://doi.org/10.1017/s0022109018000273 Zobrazit plný text záznamu Plný text ve formátu PDF