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- Publisher
- Oxford University Press
- Copyright
- Copyright © The Author 2007. Published by Oxford University Press on behalf of The Society for Financial Studies.
- Subject
- Articles
- ISSN
- 0893-9454
- eISSN
- 1465-7368
- DOI
- 10.1093/rfs/hhm040
- Publisher site
- See Article on Publisher Site
Abstract
We examine the theoretical predictions that link acquirer returns to diversity of opinion and information asymmetry. Theory suggests that acquirer abnormal returns should be negatively related to information asymmetry and diversity-of-opinion proxies for equity offers but not cash offers. We find that this is the case and that, more strikingly, there is no difference in abnormal returns between cash offers for public firms, equity offers for public firms, and equity offers for private firms after controlling for one of these proxies, idiosyncratic volatility.
Journal
The Review of Financial Studies – Oxford University Press
Published: Nov 21, 2007
Keywords: JEL G31 G32 G34