Market Valuation and Merger Waves

By Matthew Rhodes-Kropf. 2004

1,080 citations recorded by the source corpus.

Subfields: Accounting, Finance, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/8d36bbe18e0126430ccfa3721cb21a9b904773bb

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Nihat Aktas
2. Eric de Bodt
3. Malcolm P. Baker
4. Jarrad Harford
5. Gordon M. Phillips
6. Richard Roll
7. Vojislav Maksimovic
8. Anjan V. Thakor

In Finance

1. Malcolm P. Baker
2. Jeffrey Wurgler
3. Anjan V. Thakor
4. Michael R. Roberts
5. Nihat Aktas
6. Eric de Bodt
7. Richard Roll
8. Gordon M. Phillips

In Management Science and Operations Research

1. Eric de Bodt
2. Nihat Aktas
3. Richard Roll
4. Malcolm P. Baker
5. Jeffrey Wurgler
6. B. Espen Eckbo
7. N. Travlos
8. Christa H. S. Bouwman

Citations in the corpus

• How have M&As changed? Evidence from the sixth merger wave (2012, positive): “It appears that behavioral theories according to which merger waves are more likely to occur as a result of overvalued firms seeking to acquire less overvalued assets (Shleifer and Vishny, 2003 and Rhodes-Kropf and Viswanathan, 2004) are unlikely to explain the sixth merger cycle.”
• Are Fairness Opinions Fair? The Case of Mergers and Acquisitions (2008, positive): “…paying the target a higher premium so as to complete the acquisition can still be a good long-term investment strategy (Shleifer and Vishny, 2003; Rhodes-Kropf and Viswanathan, 2004; Rhodes-Kropf, Robinson, and Viswanathan, 2005). transaction improvement hypothesis, as described in Section 3.2…”
• Direct Evidence on the Market-Driven Acquisition Theory (2006, neutral): “18 The result does not provide support for one of Rhodes-Kropf and Viswanathan (2002)’s conjecture that relatively more undervalued targets are more likely to sell.”
• Takeovers and the Cross-Section of Returns (2009, background): “In particular, Bruner (2004) and Rhodes-Kropf and Viswanathan (2005) show that takeover activity is time varying and related to the conditions in the equity market.”
• A Theory of Takeovers and Disinvestment (2007, positive): “Rhodes-Kropf and Viswanathan (2003) show that potential market value deviations from fundamental values can rationally lead to a correlation between stock merger activity and market valuation.”
• Post-Merger Restructuring and the Boundaries of the Firm (2011, background): “Alternatively, it is also possible that mergers tend to occur when market valuations are relatively high, perhaps because firms can use their stock as currency for acquiring other companies, as in Shleifer and Vishny (2003) and Rhodes-Kropf and Viswanathan (2004).”
• Acquisitions Driven by Stock Overvaluation: Are They Good Deals? (2013, background): “Rhodes-Kropf and Viswanathan (2004) suggest that target managers over-estimate synergies due to incomplete information.”
• What drives merger waves (2005, background): “Authors such as Shleifer and Vishny (2003) and Rhodes-Kropf and Viswanathan (2004) develop models in which merger waves result from managerial timing of market overvaluations of their firms.”
• Market Valuation and Acquisition Quality: Empirical Evidence (2009, background): “wide component, Rhodes-Kropf and Viswanathan (2004) show that (mis-)valuation leads to ex-post”
• The Effect of Cultural Similarity on Mergers and Acquisitions: Evidence from Corporate Social Responsibility (2018, positive): “Schein (2001) reports that 61% of survey respondents agree that corporate culture is at least as important as financial concerns in merger success, and Datta (1991) links “organizational fit” directly to post-merger performance of the acquiring firm.”