Acquisition Activity (acquisition + activity)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Capital Gains Taxes and Acquisition Activity: Evidence of the Lock-in Effect,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 2 2007
Benjamin C. Ayers
[source]

Reporting Frequency, Information Precision and Private Information Acquisition

JOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 1-2 2010
Rick Cuijpers
Abstract:, This study examines whether the choice between quarterly and semiannual reporting affects the precision of investors' information and their private information acquisition activities. In the first part of this study, we show that a firm's reporting frequency has no effect on the average precision of investors' information. However, our analysis of announcement-period price variance and share turnover shows that an increase in reporting frequency does make interim and annual financial reports a more important component of investors' information set, relative to other sources of information. In particular, the results of this analysis suggest that investors of semiannual reporters hold more precise pre-announcement information than investors of quarterly reporters. In the second part of our study, we test one explanation for this finding. We argue that an increase in a firm's reporting frequency reduces investors' incentives to acquire private information between consecutive announcement dates and, consequently, should reduce information asymmetry among investors, increase share liquidity, and stimulate trading. Consistent with this reasoning, we find that quarterly reporters have lower average bid-ask spreads and higher abnormal share turnover than semiannual reporters. [source]

R&D Intensity and Acquisitions in High-Technology Industries: Evidence from the US Electronic and Electrical Equipment Industries

THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 1 2000
Bruce A. Blonigen
Theory suggests R&D intensity and acquisition activity may be either directly or inversely related. However, we know relatively little about which firms are responsible for acquisition activity in high-technology industries, which are not only R&D-intensive, but also have substantial acquisition activity in the United States. Using a panel of 217 US electronic and electrical equipment firms from 1985,93 and limited dependent variable estimation techniques, we find a substantial negative correlation between R&D-intensity and a firm's propensity to acquire. This result is surprisingly robust to numerous sensitivity tests and is significant in both the ,within' and ,between' dimensions of our data. [source]

Does the Lender Matter?

CANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 4 2002
Home Office Location, Lender Type, Real Estate Development Lending
Inter-regional expansion and merger and acquisition activity triggered by regulatory reforms are changing the structure of North America's financial industry. Increases in concentration and the belief that large and small financial institutions specialize in distinct segments of the lending market have raised concerns among some that these industry changes will have real effects on the availability and access to credit for distinct classes of borrowers, especially smaller firms. This paper examines this issue by looking at differences across lenders in the financing of residential construction by lender type and home office location (local versus out-of-province). The analysis has two components. The first is a descriptive data analysis for evidence that smaller, local lenders provide capital to more marginal and infra-marginal borrowers. The second is a test of whether lenders active in multiple jurisdictions allocate loan capital for real estate efficiently. To evaluate these issues, the paper uses data on over 1,300 senior and junior construction loans in the Vancouver, BC, metropolitan area. We find that local lenders do seem to behave differently, charging lower spreads and extending credit to more marginal or less well capitalized developers. However, contrary to the claims of many Vancouver developers, lenders in Central Canada did not limit credit to British Columbia when their home real estate markets turned down in the late 1980s and early 1990s. Instead, the lending volume and market share in the Vancouver market of lenders based outside of BC rose when the relative condition of their home real estate markets worsened. Résumé La fusion et l'expansion inter-régionales, l'acquisition des activités déclenchée par les reformes régulatrices modifient la structure des industries financières nord-américaines. Les accroissements de la concentration et la croyance en la spécialisation des petites et des grandes institutions financières dans différents secteurs du marché de prêt ont amené les uns à s'inquiéter du fait que certains de ces changements industriels peuvent avoir des effets certains sur la disponibilité et l'accès au crédit à des classes distinctes d'emprunteurs et en particulier aux petites firmes. Le présent article examine cette question en analysant les différences entre les prêteurs dans le financement des constructions résidentielles suivant le type de prêteur et le lieu d'implantation de son établissement principal (dans la province par opposition à hors de la province). L'analyse a deux composantes: la première est l'analyse descriptive des données dans le but de montrer que les petits prêteurs locaux fournissent des capitaux à plus d'emprunteurs marginaux et infra-marginaux. La seconde composante est un test qui vise à savoir si les prêteurs actifs dans plusieurs juridictions allouent efficacement des capitaux d'emprunts aux compagnies immobilières. Pour évaluer ces questions, l'article utilise des données de plus de 1300 prêts de constructions primaires et secondaires dans la zone métropolitaine de Vancouver, en Colombie Brittanique. Notre travail permet de constater que les prêteurs locaux semblent se comporter différemment, demandant des marges plus basses et accordant des crédits à des promoteurs immobiliers plus marginaux ou nettement moins capitalisés. Cependant, contrairement aux déclarations de plusieurs promoteurs immobiliers de Vancouver, les prêteurs du Canada Centre ne s'étaient pas limités à la Colombie Britannique dans l'octroi des crédits quand leurs marchés des propriétés immobilières avaient fléchi à la fin des années 1980 au début des années 1990. Bien au contraire, le volume de prêt et la part de marché dans le marché de Vancouver des prêteurs installés hors de la Colombie Britannique s'est accru quand la condition relative de leurs marchés immobiliers a empiré. [source]