The JOBS Act and mergers and acquisitions

Yongqiang Chu, Ming Liu and Shu Zhang

Journal of Corporate Finance, 2022, vol. 72, issue C

Abstract: We examine how the Jumpstart Our Business Startup Act (JOBS Act) affects mergers and acquisitions. We find that U.S. private targets are valued higher after the JOBS Act relative to public targets acquired by U.S. acquirers. The announcement returns of acquirers who acquired U.S. private targets after the JOBS Act are lower. The effect concentrates on private targets that are unlikely to qualify as small reporting companies should they choose to go public. We also show that the results are unlikely to be driven by changes in deal synergy.

Keywords: JOBS Act; Private target; Bargaining power; IPO; Disclosure cost (search for similar items in EconPapers)
JEL-codes: G30 G32 G38 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:72:y:2022:i:c:s0929119921002753

DOI: 10.1016/j.jcorpfin.2021.102153

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