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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/14799
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| Title: | Cost Inefficiency, Size of Firms and Takeovers |
| Authors: | Trimbath, Susanne
Frydman, Halina
Frydman, Roman |
| Keywords: | corporate finance and governance
mergers
acquisitions
econometric methods
models with panel data
truncated and censored models |
| Issue Date: | 2001 |
| Publisher: | Stern School of Business, New York University |
| Series/Report no.: | SOR-2001-4 |
| Abstract: | This study, using the Cox proportional hazards model, finds that the
risk of takeover rises with cost inefficiency. It also finds that a firm
faces a significantly higher risk of takeover if its cost performance
lags behind its industry benchmark. Moreover, these findings appear to
be remarkably stable over the nearly two decades spanned by the sample.
The effect of the variables used to measure the risk-size relationship,
however, indicates temporal changes. Lastly, the study presents evidence
from fixed-effects models of ex post cost efficiency improvements that
support the hypothesis that takeover targets are selected based on the
potential for improvement. |
| URI: | http://hdl.handle.net/2451/14799 |
| Appears in Collections: | IOMS: Statistics Working Papers
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