Valuation Waves And Merger Activity: The Empirical Evidence
- Topics:
- Mergers
- Tags:
- Finance,
- Social Science Electronic Publishing Inc.,
- Pricing Strategy,
- Pricing,
- Mergers & Acquisitions,
- Merger,
- Marketing Research,
- Marketing,
- Investment,
- Valuation
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Overview: From the executive summary: ‘To test recent theories that suggest valuation errors affect merger activity, the Market/Book ratio is decomposed into three components: the firm-specific pricing deviation from short-run industry pricing; sector-wide, short-run deviations from firms' long-run pricing; and long-run pricing to book.’ The paper examines the effect of misevaluation on merger activity.
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Format: PDF | Size: 305KB | Date: Sep 2002 | Pages: 63






