IDEAS home Printed from https://ideas.repec.org/a/cai/finpug/fina_351_0007.html
   My bibliography  Save this article

M&A Outcomes and Willingness to Sell

Author

Listed:
  • Eric De Bodt
  • Jean-Gabriel Cousin
  • Irina De Bruyne Demidova

Abstract

Should target shareholders divulgate their willingness to sell (WTS)? In this article, we tackle this issue by investigating the net WTS wealth effect. We first model the trade-off between the probability of a sale and the price paid in case of a sale, and derive testable predictions. We then provide an empirical test using a proxy of the target?s WTS based on deal initiation and the chosen selling procedure, which are hand-collected in Securities and Exchange Commission filings. The results reveal a negative relationship between the target?s displayed WTS and its expected profits, mitigated by competition among acquirers.

Suggested Citation

  • Eric De Bodt & Jean-Gabriel Cousin & Irina De Bruyne Demidova, 2014. "M&A Outcomes and Willingness to Sell," Finance, Presses universitaires de Grenoble, vol. 35(1), pages 7-49.
  • Handle: RePEc:cai:finpug:fina_351_0007
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=FINA_351_0007
    Download Restriction: free

    File URL: http://www.cairn.info/revue-finance-2014-1-page-7.htm
    Download Restriction: free
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zha Giedt, Jenny, 2016. "Economic Consequences of Announcing Strategic Alternatives," MPRA Paper 81356, University Library of Munich, Germany, revised 10 Sep 2017.
    2. Aktas, Nihat & Baros, Aleksandra & Croci, Ettore, 2022. "Corporate divestitures around acquisitions," Journal of Corporate Finance, Elsevier, vol. 73(C).
    3. Fidrmuc, Jana P. & Xia, Chunling, 2019. "M&A deal initiation and managerial motivation," Journal of Corporate Finance, Elsevier, vol. 59(C), pages 320-343.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:finpug:fina_351_0007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-finance.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.