We hypothesize that macro-level liquidity affects the choice between tender-mergers and mergers. We employ a novel methodology to test this relationship. This method finds structural breaks in the number of tender-mergers relative to mergers and finds that the structural breaks coincide strikingly well with major changes in macro-level liquidity. Consistent with our hypotheses our regression analysis finds that the number of tender offers increases with liquidity and also that the acquirer’s share of synergy increases as tender-mergers increase.
CITATION STYLE
Baxamusa, M., & Georgieva, D. (2015). Two-step acquisitions and liquidity spread. Journal of Economics and Finance, 39(2), 262–287. https://doi.org/10.1007/s12197-012-9247-6
Mendeley helps you to discover research relevant for your work.