Financing of takeovers

Luc Renneboog and Yang Zhao

Chapter 67 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 172-173 from Edward Elgar Publishing

Abstract: This chapter explores the financing decisions in takeovers, differentiating between financing sources (e.g., cash reserves, debt , equity) and means of payment. It examines the pecking order of financing preferences, the impact of corporate governance on cost of capital, and shareholder preferences. The chapter highlights how these factors, combined with signaling and strategic considerations, influence financing decisions and their implications for takeover success and value creation.

Keywords: Financing; All-equity offer; Cash offer; Means of payment; Pecking order; Cash holdings; Empire building (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781800880863.00073 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20450_67

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().