Information costs and search in M&A markets
Abstract
This dissertation develops three essays about the acquisitions of privately held targets by using data involving venture-capital backed firms. Drawing from information economics and research on the "acquisition probability hypothesis", I develop hypotheses regarding the firm specific factors and the information spillovers from rivals' corporate activity that can enable acquisitions. The first two essays examine the information conveyed by the announcements of mergers and acquisitions (M&A) and initial public offerings (IPOs) and propose that rivals' corporate activity can have a bearing on the M&A market efficiency. Specifically, these announcements can lower the acquirers' information costs in M&A markets and facilitate their search for acquisition targets. The third essay suggests that an acquirer's experience in the M&A market will strengthen the value of signals on target selection. Taken together, the theoretical arguments and research settings in this dissertation are expected to improve our understanding of the M&A deal-making associated with privately held firms.
Degree
Ph.D.
Advisors
Reuer, Purdue University.
Subject Area
Management
Off-Campus Purdue Users:
To access this dissertation, please log in to our
proxy server.