Why newly listed firms become acquisition targets

De, Soumendra; Jindra, Jan

doi:10.1016/j.jbankfin.2012.06.006

Cited by 18 publications

(17 citation statements)

References 50 publications

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“…Consistent with Powell (), Powell and Yawson (), Cornett et al. () and De and Jindra (), firm size is proxied by the natural log of total assets.…”

Section: Methodsmentioning

confidence: 85%

“…The firm size hypothesis argues that takeover probability decreases with firm size, as the number of viable bidders for a target decreases as its size increases (Palepu, 1986;Powell, 2001;and Gorton et al, 2009). Consistent with Powell (1997), Powell and Yawson (2007), Cornett et al (2011) and De and Jindra (2012), firm size is proxied by the natural log of total assets.…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Abnormal Returns from Takeover Prediction Modelling: Challenges and Suggested Investment Strategies

Danbolt¹,

Siganos²,

Tunyi

2016

Business Fin & Account

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“…Consistent with Powell (), Powell and Yawson (), Cornett et al. () and De and Jindra (), firm size is proxied by the natural log of total assets.…”

Section: Methodsmentioning

confidence: 85%

Section: Methodsmentioning

confidence: 99%

Abnormal Returns from Takeover Prediction Modelling: Challenges and Suggested Investment Strategies

Danbolt¹,

Siganos²,

Tunyi

2016

Business Fin & Account

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“…A number of papers have addressed the determinants of the decision to delist, the time and the exit route from the stock market (Balcaen et al 2011;Bharath and Dittmar 2010;De and Jindra 2012;Kashefi Pour and Lasfer 2013;Oh 2018, among others). These studies have shown that companies delist for several reasons and in diverse forms such as bankruptcy, voluntary liquidation and M&A.…”

Section: Vc Governance and Firm's Type Of Delisting After The Ipomentioning

confidence: 99%

“…It might also voluntarily delist due to difficulties in raising additional funds or due to high levels of debt (Kashefi Pour and Lasfer 2013). It might also become an acquisition target because of imminent bankruptcy (Balcaen et al 2012;De and Jindra 2012). The type of delisting might result from a strategic or an involuntary choice (see for instance: Bharath and Dittmar 2010;Kashefi Pour and Lasfer 2013).…”

Section: Vc Governance and Firm's Type Of Delisting After The Ipomentioning

confidence: 99%

“…Thus, distinguishing between intra-and extra-EU deals is more appropriate in order to understand the forces at stake. We consider first the impact of VCs in post-IPO acquisition in a general way, by The literature has identified several types of assets and characteristics that make firms more likely to become acquisition targets shortly after their IPO (Jain and Kini 2000;Brau et al 2010;De and Jindra 2012;Chemmanur et al 2014b). However, these studies have little to say on differences across domestic and cross-border transactions.…”

Section: Delisting Through Mandas and The Type Of Vc Investormentioning

confidence: 99%

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Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms

Useche

Pommet

2020

Small Bus Econ

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Takeover in Europe: Target characteristics and acquisition likelihood

Meghouar

2024

Journal of Forecasting

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This article analyzes characteristics of takeover targets in the European market—relatively less studied compared with US and UK markets—to develop a takeover prediction model. Our sample includes 320 European companies with 140 targets and 180 non‐targets over the period 1994–2007, covering two M&A waves. In this study, we test the discriminating power of many relevant variables including new one that could have a discriminating power in potentially determining (value creation). Our results show that European targets are characterized by a growth‐resource imbalance, are less rich in FCF, have growth opportunities, have a higher level of transaction volume of shares prior to the bid, achieve lower economic performance, and destroy value. Furthermore, we develop several predictive models using targets' financial data from 1 year, 2 years, and 3 years before takeover, along with the 3‐year average. The correct classification power in the original sample is 70% (in‐sample). As for predictive ability, the correct classification power in a control sample is 79.4% (out‐of‐sample). We also noted that predictive models using data from 1 or 2 years before the bid appear to display more significant predictive ability.

show abstract

Why newly listed firms become acquisition targets

Cited by 18 publications

References 50 publications

Abnormal Returns from Takeover Prediction Modelling: Challenges and Suggested Investment Strategies

Abnormal Returns from Takeover Prediction Modelling: Challenges and Suggested Investment Strategies

Where do we go? VC firm heterogeneity and the exit routes of newly listed high-tech firms

Takeover in Europe: Target characteristics and acquisition likelihood

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