| Author: | Servaes, H. |
| Title: | Do takeover targets overinvest? |
| Journal: | Review of Financial Studies
1994 : SUMMER, VOL. 7:2, p. 253-277 |
| Index terms: | MERGERS CAPITAL EXPENDITURE COMPANIES |
| Language: | eng |
| Abstract: | The author examines the capital expenditures of a sample of 700 takeover targets and firms that went private over the period 1972-1987. For the complete sample, the author doesn't find evidence that takeover targets increase their capital expenditures over the four year period before the acquisition or that they overinvest in capital expenditures relative to several benchmarks. Subsample results provide some evidence of overinvestment in oil and gas firms and large firms. |
SCIMA