Are cash acquisitions associated with better postcombination operating performance than stock acquisitions

By S. Linn, Jeannette A. Switzer. 2001

218 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0800c558cd891103cc1a03cd3f8dd329b47e0ddf

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Citations in the corpus

Does Operating Performance Increase Post-takeover for UK Takeovers? A Comparison of Performance Measures and Benchmarks (2005, methodology): “The performance measure used predominately in previous papers tends to be an accruals definition of operating cash flow, defined simply as pre-depreciation profit (see, e.g., Healy et al., 1992; Linn and Switzer, 2001 and Ghosh, 2001).”
The Long-Term Operating Performance of European Mergers and Acquisitions (2006, methodology): “Furthermore, most of the US studies that find significant increases in cash flow performance, employ market value of assets to scale cash flows (Linn and Switzer, 2001; Parrino and Harris, 1999; Switzer, 1996; Healy et al., 1992), whereas our analysis is based on the book value of assets and sales.”
The Determinants of Positive Long-Term Performance in Strategic Mergers: Corporate Focus and Cash (2004, unknown): “…(see, for example, Barber and Lyon, 1997; Kothari and Warner, 1997; Lyon et al., 1999; Loughran and Ritter, 2000; Mitchell and Stafford, 2001), we also conduct tests using long-term operating cash flow returns similar to the tests in Desai and Jain (1999), Ghosh (2001), and Linn and Switzer (2001).”
A century of corporate takeovers: What have we learned and where do we stand? (2008, unknown): “…report a post-merger decline in the operating returns of merged firms (e.g. Ravenscraft and Scherer, 1987), 7 papers show insignificant changes in profitability (e.g. Linn and Switzer, 2001), and 5 papers provide evidence of a significantly positive increase (e.g. Carline, Linn and Yadav, 2002).”
The impact of acquisitions on firm performance: A review of the evidence (2007, unknown): “Linn and Switzer (2001) 1967–1987 413 mergers and acquisitions US − 5 to + 5• Average 1.81% industry-adjusted combined firm cash flow return over the − 5 to + 5 year period (significant).”
To what extent does corporate liquidity affect M&A decisions, method of payment and performance? Evidence from China (2017, background): “Hence, on average, stock-financedmergers underperform cash-financed ones (Travlos, 1987; Fishman, 1989; Loughran and Anand, 1997; Andrade et al., 2001; Linn and Switzer, 2001; Abhyankar et al., 2005).”