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Acquisition Values and Optimal Financial (In)Flexibility

Author

Listed:
  • Hege, Ulrich
  • Hennessy, Christopher
Abstract
In this paper, the authors analyze optimal financial structure for an incumbent and potential entrant accounting for feedback effects in secondary asset markets.

Suggested Citation

  • Hege, Ulrich & Hennessy, Christopher, 2007. "Acquisition Values and Optimal Financial (In)Flexibility," HEC Research Papers Series 878, HEC Paris.
    • Handle: RePEc:ebg:heccah:0878
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    References listed on IDEAS

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    Cited by:

    1. Ioannis Anagnostopoulos & Anas Rizeq, 2021. "Conventional and neural network target‐matching methods dynamics: The information technology mergers and acquisitions market in the USA," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 28(2), pages 97-118, April.
    2. Tarsalewska, Monika, 2018. "Buyouts under the threat of preemption," Journal of Banking & Finance, Elsevier, vol. 89(C), pages 39-58.
    3. Tarsalewska, Monika, 2015. "The timing of mergers along the production chain, capital structure, and risk dynamics," Journal of Banking & Finance, Elsevier, vol. 57(C), pages 51-64.
    4. Gui, Zhengqing & von Thadden, Ernst-Ludwig & Zhao, Xiaojian, 2019. "Incentive-compatibility, limited liability and costly liquidation in financial contracting," Games and Economic Behavior, Elsevier, vol. 118(C), pages 412-433.
    5. Renjie, Rex Wang & Xia, Shuo, 2024. "Poison bonds," IWH Discussion Papers 3/2024, Halle Institute for Economic Research (IWH).

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    More about this item

    Keywords

    Financial Flexibility; Market Entry; Acquisition; Exit Values; Predation; Financial Contracting; Product Market Competition;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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