This paper investigates if the equity stake, along with hedge funds, generates value for target companies in highly concentrated markets, such as Brazilian one. In a sample 324 listed São Paulo Stock Market (B3) that are actively participating Anbima Hedge Fund Index (IHFA), between 2007 and 2016, we found stake of funds invested companies, despite market being more concentrated. We capture fun...

Acquirers can use company-specifi c synergies as a competitive advantage, particularly when they bid against private equity fi rms. Previously, private equity fi rms outbid strategic buyers by utilizing fi nancial leverage to achieve return goals. The current economic environment doesn’t enable that strategy; private equity fi rms can only embed synergies in their bid price when they merge the ...

This note is a complementary material for the solution of optimal real-time bidding function in paper [1], where the estimated cost is taken as the bid price, i.e., the upper bound of the true cost. Here we discuss a more general bid optimisation framework with various utility and cost functions. 1 Preliminaries Define the bidding function as b(r) which returns the bid price given the estimated...

Using the UK as a “natural experiment” that allows examination of the effect of the form of payment separately from bidder hostility in a way not easily achievable in the US, we show that the form of payment hypothesis interacts with bid hostility, or “disciplinary bidding” in explaining acquirer wealth effects. Equity financed acquisitions and non-hostile bids generate negative returns, and th...

We investigate the timing of open market share repurchases and the resultant impact on firm liquidity. Using Hong Kong’s unique disclosure environment, we identify the exact implementation dates for over 5,000 equity buybacks. We find that managers exhibit substantial timing ability. Consistent with the information-asymmetry hypothesis, bid-ask spreads widen and depths narrow during repurchase ...