search query: @indexterm Tender offers / total: 102
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| Author: | Lang, L. H. P. Stulz, R. M. Walkling, R. A. |
| Title: | A test of the free cash flow hypothesis. The case of bidder returns. |
| Journal: | Journal of Financial Economics
1991 : OCT, VOL. 29:2, p. 315-335 |
| Index terms: | CASH FLOW TENDER OFFERS RETURN ON INVESTMENT REGRESSION ANALYSIS CORPORATE FINANCE |
| Language: | eng |
| Abstract: | A measure of free cash flow is developed , using Tobin's q to distinguish between firms that have good investment oportunities and those that do not. In a sample of successful tender offers, bidder returns are significantly negatively related to cash flow for low q bidders but not for high q bidders; further, the relation between cash flow and bidder returns differs significantly for low q and high q bidders. This result holds for several cash flow measures suggested in the literature and also in multivariate regressions controlling for bidder and contest-specific characteristics. |
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