Exploring the acquisition behavior of penny stock firms

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2024-11-01 DOI:10.1016/j.bar.2023.101276

Shujie Liu , Mohammed Aminu Sualihu , Mingwei Sun , Alfred Yawson

引用次数: 0

Abstract

We document that penny stock firms' acquisition likelihood increases with firm size, sales growth, free cash flow, stock price volatility, and run-up, but decreases with leverage, the number of years since IPO, and Tobin's Q. These findings are validated in a stepwise regression framework and are robust to alternative model specifications. Penny stock acquirers prefer public targets and are more (less) likely to use stocks (cash) as the payment method. We also find that acquisitions announcement returns are higher for penny stock firms than for non-penny stock firms, even after accounting for firm- and deal-characteristics. Further analyses indicate that the increase in announcement returns is driven by the firm's improved information environment. Overall, we document that penny stock firms are significant players in the market for corporate control.

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探究仙股公司的收购行为

我们发现，仙股公司的收购可能性随公司规模、销售增长、自由现金流、股价波动和上涨而增加，但随杠杆率、首次公开募股后的年数和托宾 Q 值的增加而减少。细价股收购者更青睐上市目标，并且更倾向于（较少）使用股票（现金）作为支付方式。我们还发现，即使考虑了公司和交易特征，仙股公司的收购公告收益也高于非仙股公司。进一步的分析表明，公告收益的增加是由公司信息环境的改善所驱动的。总体而言，我们发现仙股公司在公司控制权市场上扮演着重要角色。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.