Determinants of tender offer premiums

Author: gcge

August undefined, 2024

WebDec 7, 2003 · For the average (median) tender offer, the tender price is 4.75 (3.40) percent greater than the pre-tender market price while the percentage of bonds tendered is 82.3 (94.6) percent. Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater … WebWe investigate differences in purchase premiums and returns of common stock the day following the offer expiration of firms conducting Dutch auction self-tender offers versus those conducting fixed-price self-tender offers to see whether firms overpay for shares in fixed-price offers. After controlling for the proportion of shares sought and ...

Determinants of Premiums in Acquisition …

WebMar 30, 2024 · Determinants of tender offer premiums. Financial Analysts Journal, 41, 54 – 68. Rhoades, S. A. (1987). Determinants of Premiums Paid in Bank Acquisitions”, Atlantic Economic Journal, March, pp. 20-30. Rose, P.S. (1991). Bidding theory and bank merger premiums: The impact of structural and regulatory factors. Review of Business … WebA tender offer is typically an active and widespread solicitation by a company or third party (often called the “bidder” or “offeror”) to purchase a substantial percentage of the … north dakota oil mining companies

"An analysis of bid premiums in acquisition offers for Forbes 500 …

WebMar 1, 2007 · Our multivariate analysis of tender offers focuses on the determinants of the tender premium and the percentage of bonds tendered. In Table 5, we examine the … WebAug 1, 2003 · This research analyzes the impacts of core-relatedness and multiple bidders on premiums paid in 285 tender offers for US-based manufacturing firms. In a core-related M&A, the primary business of the acquirer is the same, vertically connected to or similar to the primary business of the target firm. WebApr 1, 1997 · The analyses of the tender offer premiums and of the means of payment should not be performed separately. In the empirical literature, these two variables are often considered independently, although they may have an endogenous relationship in a contractual setting. ... We analyze the major determinants of M&A terms when the offer … north dakota oil spill local news

Determinants of Bond Tender Offer Premiums and the Percentage …

Determinants of Premiums in Acquisition Transactions - JSTOR

WebJan 6, 2005 · Our results indicate that stock price inelasticity, caused by taxes, is an important determinant of offer premiums for fixed-price self-tender offers. We also find that the information conveyed by the offer, measured by the post-expiration appreciation of the firm's stock, is contained in the tender offer premium, and that offer premiums are ... Websample of cash tender offers made over the time period 1972-7 premiums over market value averaged 52% and ranged between 2% and 157%. What accounts for this … how to resize video in after effects how to resize video capture in obs

"WebOther significant determinants of premiums paid include profitability as measured by returns on equity, growth proxied by state deposit growth and future expected population growth, and charge‐offs to total loans as an indicator of loan quality. ... multiple bidders and tender offer premiums, Journal of Business Research, 10.1016/S0148-2963 ... " - Determinants of tender offer premiums

Determinants of tender offer premiums

How managerial wealth affects the tender offer process

WebWe investigate why firms pay a premium when making a tender offer to repurchase shares, and if the size of the premium is related to the elasticity of the supply curve for the firm's stock. We find that premiums on self-tender offers are related to characteristics of tendering firms, and to variables that are proxies both for the capital gains and for the … WebMar 1, 2007 · There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market …

Did you know?

WebThe percentage of shares already controlled by the offering company, its ability to acquire enough shares to be able to implement potentially beneficial changes, and the existence … WebJarrell and Bradley (1980), the average premium in cash tender offers in the U.S. increased from 32 percent to nearly 53 percent after the passage of disclsoure regulations in 1968. 1 Jarrell and Bradley attribute this premium increase to a combination of disclosure rules and the fact that the

Webundervaluation than a Dutch offer because the average premium paid is more significant in a fixed price tender offer. Also, in this case, the insiders set the terms of the trade Tender offer ... tender offer repurchase as a payout method Varma et al. (2016). ... determinant of the payout policy. Firms characterized by low heterogeneity or lower ... WebRepurchase and Tender Offer Premiums James W. Wansley, William R. Lane, and Salil Sarkar ... C. Determinants of Tender Offer Premiums Several factors may affect the size of the tender offer premium. These factors may be expressed as: (i) The dividend substitution hypothesis. The pre-

WebFeb 1, 1994 · Changes in managerial wealth resulting from a tender offer are negatively related to the likelihood of managerial resistance to a tender offer and positively related to the likelihood of tender offer success. We also document that the abnormal returns to tender offers are lower for hostile than for friendly offers if we control for the tender ... WebFeb 1, 2009 · Table 4 shows cross-sectional determinants of the offer premiums using the offer premium data in Betton, Eckbo, and Thorburn (2008b). The explanatory variables are grouped into “Target characteristics”, “Bidder characteristics”, and “Deal characteristics”. ... They find that the average cash tender offer premium increased from 32% ...

WebMar 1, 2007 · Potential determinants of tender premium and percentage tendered2.1. Tender premium. There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market conditions and taxes; (3) information asymmetry; and (4) ability to pay for a successful …

WebJul 29, 2011 · The percentage of shares already controlled by the offering company, its ability to acquire enough shares to be able to implement potentially beneficial changes, … how to resize ubuntu window in virtualboxWebMar 1, 2007 · For the average (median) tender offer, the tender price is 5.55% (3.24%) greater than the pre-tender market price while the percentage of bonds tendered is 82.3% (94.6%). Premiums offered by firms are greater when the firm is simultaneously soliciting consents to amend restrictive covenants and when the bond has a greater number of … north dakota oil rigWebsample of cash tender offers made over the time period 1972-7 premiums over market value averaged 52% and ranged between 2% and 157%. What accounts for this phenomenon? Why are acquiring firms willing and why are theyforced to offer such large premiums? We address these questions by undertaking a two-stage analysis. In stage … how to resize video in filmoraWebWe analyze a large sample of recent US corporate bond tender offers to understand what affects tender premiums as well as the percentage of bonds tendered. For the average (median) tender offer, the tender price is 4.75 (3.40) percent greater than the pre-tender market price while the percentage of bonds tendered is 82.3 (94.6) percent. Premiums … how to resize video in cssWebDec 31, 2024 · Determinants of Tender Offer Premiums. Ralph A. Walkling. &. Robert O. Edmister. Pages 27-37 Published online: 31 Dec 2024. Download citation. … how to resize using gimpWebOur results indicate that stock price inelasticity, caused by taxes, is an important determinant of offer premiums for fixed-price self-tender offers. We also find that the … north dakota organic agricultureWebDeterminants of Tender Offer Premiums. Article. Full-text available. Jan 1985; FAJ; Robert O. Edmister; Ralph A. Walkling; The bid premium acquiring companies offer for target company shares may ... how to resize wallpaper