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Journal Articles Harvard business review Year : 2009

Equity or Cash? The Signal Sent by the Way You Pay

Abstract

The article reports on a study of asymmetric market information and corporate transactions such as the purchase of assets. The researchers found that buyers want to pay with equity instead of cash when they believe that their shares are overvalued and sellers want to receive equity when they believe the asset will create value for the buyer.

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hal-00493191 , version 1 (18-06-2010)

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U. Hege, M. Sushka. Equity or Cash? The Signal Sent by the Way You Pay. Harvard business review, 2009, vol.87, nº5, pp. 22. ⟨10.1225/F0905C⟩. ⟨hal-00493191⟩

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