Determinants of tender offer premiums

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WebThis study examines the determinants of offer premiums for a sample of fixed-price tender offers from 1970 through 1999. We investigate the extent to which the offer premiums for these tender offers are explained by both tax-related and non-tax variables. Specifically, we ask the question "What factors do managers consider in setting the offer ... 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

How managerial wealth affects the tender offer process

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 ... WebDeterminants of Bond Tender Premiums and the Percentage Tendered Abstract: We analyze a large sample of recent US corporate bond tender offers to understand what … north carolina schedule vi drugs

Determinants of bond tender premiums and the percentage …

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- 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 ... 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 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 … north carolina sbdc

Determinants of Premiums in Acquisition …

Determinants of Premiums on Self-Tender Offers - JSTOR

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 … WebWe 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 … north carolina school baptized 100 studentsWebare also significant determinants of bid premiums. When two or more bidders compete for the same target, the bid premium averages 30 percentage points higher than the … north carolina schedule a

"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 … " - Determinants of tender offer premiums

Determinants of tender offer premiums

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 … Webtender offers than in self-tender offers even after attempting to control for the factors found to affect tendering (e.g., premium to tender) and the different incentives of atomistic shareholders to tender in the two transactions. A possible …

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WebAn original data set of Forbes 500 targets is used. Determinants of the bid premium are found to differ between mergers and tender offers. Target liquidity, dividend payout, size, and success probability are significant determinants of premiums in tender offers while profitability and market to book value are significant for mergers. 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 ...

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 … WebMar 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 …

WebOur 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 … 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% ...

WebDeterminants 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 ...

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 ... how to reset clock on fitbit oneWebsample 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 … north carolina school baptizes studentsWebWe 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 … north carolina school asthma survey ncsasWebThe 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 … how to reset clock macWebWe 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 ... north carolina schedule viWebJul 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, … north carolina schedule c north carolina scary bridge