We present a model of mergers and acquisitions based on stock market misvaluations of the combining firms. The key ingredients of the model are the relative valuations of the merging firms, the horizons of their respective managers, and the market's perception of the synergies from the combination.

The model explains who acquirers whom, whether the medium of payment is cash or stock, what are the valuation consequences of mergers, and why there are merger waves. The model is consistent with available empirical findings about characteristics and returns of merging firms, and yields new predictions as well.

If you experience problems downloading a file, check if you have the proper application to view it first.

Stock Market Driven Acquisitions by Andrei Shleifer, Robert W. Vishny :: SSRN

In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site.

Please be patient as the files may be large. Aug Publication status: AP CF Contact details of provider: National Bureau of Economic Research, Massachusetts Avenue Cambridge, MA , U. Related research [Other version s available] Keywords: Other versions of this item: Find related papers by JEL classification: G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance This paper has been announced in the following NEP Reports: NEP-ALL All new papers NEP-FMK Financial Markets References References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Evidence and Implications ," Scholarly Articles , Harvard University Department of Economics.

Stein, Jeremy C, Martin, Kenneth J, Stock Prices and the Investment of Equity-Dependent Firms ," The Quarterly Journal of Economics , Oxford University Press, vol. Stock Prices and the Investment of Equity-Dependent Firms ," NBER Working Papers , National Bureau of Economic Research, Inc.

Stock Prices and the Investsment of Equity-Dependent Firms ," Harvard Institute of Economic Research Working Papers , Harvard - Institute of Economic Research.

De Long, J Bradford, et al, Is the Market a Sideshow? A Model of Myopic Corporate Behavior ," The Quarterly Journal of Economics , Oxford University Press, vol. Jensen, Michael C, Putting a Stop to the Earnings Game ," Journal of Applied Corporate Finance , Morgan Stanley, vol.

Small Cap Leader - Free NASDAQ Stock Picks and Small Cap Stocks

Putting A Stop To The Earnings Game ," Journal of Applied Corporate Finance , Morgan Stanley, vol. Making Sense of the s and s ," NBER Working Papers , National Bureau of Economic Research, Inc.

Full references including those not matched with items on IDEAS Citations Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Hughes Optioneering

Lists This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS. Statistics Access and download statistics Corrections When requesting a correction, please mention this item's handle: See general information about how to correct material in RePEc. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 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. If references are entirely missing, you can add them using this form. If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation. Please note that corrections may take a couple of weeks to filter through the various RePEc services. IDEAS is a service hosted by the Research Division of the Federal Reserve Bank of St.

Log in now much improved! Stock Market Driven Acquisitions. Author info Abstract Bibliographic info Download info Related research References Citations Lists Statistics Corrections.

Andrei Shleifer Robert W. Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number HTML HTML with abstract plain text plain text with abstract BibTeX RIS EndNote, RefMan, ProCite ReDIF JSON in new window. Related research [Other version s available]. References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Full references including those not matched with items on IDEAS.

Citations are extracted by the CitEc Project , subscribe to its RSS feed for this item. This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS. Access and download statistics. When requesting a correction, please mention this item's handle: How to help Corrections Volunteers Get papers listed Open a RePEc archive Get RePEc data.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data. More information through EDIRC.