Tag Archives: mispricing

Acquirer Mispricing and Payment Choices 

By | July 22, 2022

Are bidders in mergers and acquisitions (M&A) able to exploit their overvaluation by using overpriced shares as acquisition currency? The question has been debated within the financial economics literature since Shleifer and Vishny (2003) and Rhodes-Kropf and Viswanathan (2004) put forth theories suggesting that misvaluation drives the payment method in M&A deals. These seminal papers… Read More »