Takeover activity as a response to time-varying changes in investment opportunity sets

Evidence from takeover sequences

Sandy J Klasa, Mike Stegemoller

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

We study takeover sequences that contain at least five acquisitions made over a period greater than 12 months, with no two acquisitions separated by more than 24 months. Acquisitions made within such sequences represent more than a quarter of aggregate takeover activity by U.S. public firms from 1982-1999. Our findings are consistent with a proposition that takeover sequences occur in the. context of time-varying changes in an acquirer's growth opportunity set. Takeover sequences begin (end) subsequent to an expansion (contraction) of this opportunity set.

Original languageEnglish (US)
Pages (from-to)19-43
Number of pages25
JournalFinancial Management
Volume36
Issue number2
StatePublished - Jun 2007

Fingerprint

Investment opportunity set
Time-varying
Opportunity sets
Contraction
Growth opportunities
Public firm

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Takeover activity as a response to time-varying changes in investment opportunity sets : Evidence from takeover sequences. / Klasa, Sandy J; Stegemoller, Mike.

In: Financial Management, Vol. 36, No. 2, 06.2007, p. 19-43.

Research output: Contribution to journalArticle

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