 Mergers and acquisitions in the U.S. agribusiness sector, 1990–2017Carlos J. O. Trejo‐Pech, Michael A. Gunderson and Dayton Lambert Agribusiness, 2021, vol. 37, issue 4, 713-730 Abstract: The study examines financial and transaction characteristics that influence mergers and acquisitions (M&A) in U.S. agribusinesses. During the M&A private phase, we model the likelihood of firms becoming bidders or targets as a function of firms' past financial performance. During the M&A public phase, the likelihood of bidders becoming acquirers is modeled as a function of firms' past financial performance and M&A transaction characteristics. The results for the subset of bidders in the M&A private phase suggest that the likelihood of a firm becoming a bidder is positively correlated with the bidder's firm size 1 year before the M&A announcement. In contrast, the likelihood of a firm becoming a bidder is negatively associated with bidder's leverage, cash level, and very low market valuations. For the subset of targeted firms, the likelihood of firms being targeted is positively associated with the firm's leverage and negatively related with its profitability. Our results for the M&A public phase model show that firm experience in the M&A market is positively associated with the likelihood of acquisition completion. In addition, relative to nonhorizontal transactions, horizontal mergers tend to be more difficult to complete. [EconLit Citations: G34, M2]. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:37:y:2021:i:4:p:713-730 Access Statistics for this article Agribusiness is currently edited by Ronald W. Cotterill More articles in Agribusiness from John Wiley & Sons, Ltd. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.