2024 Determinants of tender offer premiums

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 ... 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 …

Determinants of Premiums on Self-Tender Offers - JSTOR

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 … WebApr 1, 1997 · The analyses of the tender offer premiums and of the means of payment should not be performed separately. In the empirical literature, these two variables are often considered independently, although they may have an endogenous relationship in a contractual setting. ... We analyze the major determinants of M&A terms when the offer … how to install cleft chestnut post and rail

TYPOLOGIE DES DÉTERMINANTS DES PRIMES D

WebDeterminants of Tender Offer Premiums The bid premium acquiring companies offer for target company shares may be expected to be a positive function of potential acquisition-related benefits and a negative function of the bargaining power of the bidder. A bid … 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. WebAug 1, 2003 · This research analyzes the impacts of core-relatedness and multiple bidders on premiums paid in 285 tender offers for US-based manufacturing firms. In a core-related M&A, the primary business of the acquirer is the same, vertically connected to or similar to the primary business of the target firm. jones beach boardwalk bandshell

Determinants of Bond Tender Premiums and the …

Tender Offer Investor.gov

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 ... 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 ... jones beach amphitheater bag policyWebExamples of Tender Premium in a sentence. Includes the Early Tender Premium, but excludes accrued and unpaid interest, which also will be paid to, but excluding, the … how to install clearstream 4 hdtv antenna

"WebMar 1, 2007 · There are four primary factors that we expect will directly affect tender offer premiums. 5 These factors include: (1) stated motivation of the firm; (2) market … " - Determinants of tender offer premiums

Determinants of tender offer premiums

WebWe 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 ... 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% ...

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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 ... Webto the effect of the tender offer premium offered to the shareholders by adding a variable whether the offer price exceeds the target 52-week high price. I also study the determinants in special situations such as hostile and competed offers. DATA AND METHODOLOGY A sample of 3783 tender offers from 38 countries was gathered from …

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 WebDec 31, 2024 · Determinants of Tender Offer Premiums. Ralph A. Walkling. &. Robert O. Edmister. Pages 27-37 Published online: 31 Dec 2024. Download citation. …

WebJan 1, 1985 · Premiums in offers where the bidder seeks majority control are 9 percentage points higher than when the bidder does not seek … 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 …

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 ...

WebJul 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, … jones beach boardwalk cafeWebFeb 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 install clevguardWebThe 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 install cleat shelvingWebWe 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 … how to install clevguard on iphoneWebWe 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 … jones beach boardwalk cafe hoursWebMar 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 … jones beach coast guard stationWebMar 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 … jones beach boardwalk cafe menu