Target acquisitiveness stands out as one of the primary drivers of all the key aspects of the market for corporate takeovers: acquisition announcement returns, probability of deal success, propensity to acquire and be acquired. Acquisitive targets, though a small proportion of the sample, are responsible for half of the overall negative acquisition announcement returns. Our large body of
empirical evidence consistently supports the view that the motivation behind acquisitions of acquisitive targets is defensive: acquirers ‘eat in order not to be eaten’.
Published inReview of Finance
Pages1489 - 1541
CitationPHALIPPOU, L., XU, F. and ZHAO, H., 2015. Acquiring Acquirers. Review of Finance, 19(4), pp. 1489-1541.
Publisher© The Authors. Published by Oxford University Press on behalf of the European Finance Association
VersionAM (Accepted Manuscript)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis is a pre-copyedited, author-produced version of an article accepted for publication in Review of Finance following peer review. The version of record PHALIPPOU, L., XU, F. and ZHAO, H., 2015. Acquiring Acquirers. Review of Finance, 19(4), pp. 1489-1541. is available online at: http://dx.doi.org/10.1093/rof/rfu037