Probability Weighting and Asset Prices: Evidence from Mergers and Acquisitions

Author(s):  
Baolian Wang
Author(s):  
Nikolaos Antypas

Mergers and acquisitions (M&As) have been less frequent during crises. The COVID-19 pandemic has resulted in a global economic shock and a surge in uncertainty, depressing M&A activity to record low levels. The unpromising economic prospects, the persisting high valuations, and potential liquidity crunches will restrict acquisitions for the foreseeable future. Companies with large cash balances may perform opportunistic acquisitions when asset prices drop to attractive levels. Acquisition activity can be further affected by government actions, especially if governments discourage acquisitions to promote market competition.


2011 ◽  
Author(s):  
Robin R. Cohen ◽  
Kim Stepanski ◽  
Miriam Ort ◽  
Eryn A. O'Brien

2009 ◽  
pp. 23-45 ◽  
Author(s):  
A. Radygin

The article deals with key tendencies in the development of Russia’s market of mergers and acquisitions in the first decade of the 21st century. Quantitative parameters are analyzed by using available in the open access data bases for the years 2003-2008 taking into consideration new tendencies relating to 2008 financial crisis. An active role of the state played in the market of corporate control represents an important factor. Special attention is given to issues of development of Russia’s system of legal norms regulating the market of mergers and acquisitions.


Sign in / Sign up

Export Citation Format

Share Document