Darryl Laws

 Although I expect diversification to be an important motive to some CEOs of acquisitive firms, I do not expect it to be the top-ranked motive. I expect that evidence will suggest that a much more negative view of diversifying takeovers. 

Second, what views do private equity fund managers and CEOs have about the relationship between mergers and acquisitions and the premium price paid for a target company? Roll (1986) and Jensen (1986) Abour, Zhao’s (2009) papers interpret the impacts of the premium price paid for target company acquisitions does not support the view that paying a high premium does not impact the port merger performance of a company three years subsequent to the acquisition. I am expecting different results since the genre of y study is 2018-2019.

Third, what methods do CEOs use to value or premium price that they will pay for a target company? I expect that the DCF method is the most common approach used to value both publicly-held and closely-held target firms. Such a finding would be consistent with the growing body of evidence that managers rely on DCF valuation in general corporate finance settings. For example, survey results by Bruner et al. (1998) show that DCF is the dominant investment-evaluation technique used by the most financially sophisticated companies and financial advisers. Graham and Harvey (2001) report similar findings. The use of DCF methods to value targets would also be consistent with evidence from past practitioner surveys on M&As by Baker, Miller, and Ramsperger (1981). 

Characteristics of respondents. Sample # 1 will illustrate the results involving the number and average asset size of acquisitions (Q1 and Q2), respectively. The findings should show the involvement of most of the responding firms in multiple acquisitions during 20018-2019. For example, Panel # 1 will identify the responding firms engaged in more than 10 acquisitions during this period.

Level of Agreement or Disagreement with Statements Involving M&A. 

This exhibit reports the level of agreement or disagreement of the respondents to nine statements involving M&As based on a five-point scale: 

+2 = strongly agree, +1 = agree, 0 = no opinion, 

-1 = disagree,  –2 = strongly disagree. 

The one-sample t-value will be used to indicate whether the mean is statistically different from zero (no opinion). 

Darryl Laws