Choice of Payment in German Mergers and Acquisitions. An Empirical Analysis of Bidder-Acquisition and Business Cycles

Inhaltsverzeichnis (Table of Contents)

• INTRODUCTION
• THE GERMAN MERGERS AND ACQUISITIONS MARKET
• PROBLEM DEFINITION
• FUNDAMENTALS AND THEORETICAL BACKGROUND
• MERGERS AND ACQUISITIONS
• MERGERS AND ACQUISITIONS TRANSACTION PROCESS
• PAYMENT METHODS
• CASH PAYMENTS
• SHARE PAYMENTS
• MIXED PAYMENTS
• OTHER PAYMENTS
• METHOD OF PAYMENT VS. MODE OF FINANCING
• THEORETICAL BACKGROUND OF THE PAYMENT METHOD
• ASYMMETRIC INFORMATION
• TAXATION
• LITERATURE REVIEW AND HYPOTHESES
• CHARACTERISTICS OF THE BIDDER
• CORPORATE CONTROL HYPOTHESES
• FINANCIAL LEVERAGE HYPOTHESIS
• DEBT CAPACITY HYPOTHESES
• CASH AVAILABILITY HYPOTHESIS
• RELATIVE SIZE HYPOTHESIS
• INVESTMENT OPPORTUNITIES HYPOTHESIS
• STOCK PERFORMANCE HYPOTHESIS
• CHARACTERISTICS OF THE ACQUISITION
• CROSS-BORDER HYPOTHESIS
• CROSS-INDUSTRY HYPOTHESIS
• UNLISTED TARGET HYPOTHESIS
• CHARACTERISTICS OF THE BUSINESS CYCLE
• MARKET PERFORMANCE HYPOTHESIS
• OVERVIEW OF HYPOTHESES
• DATA AND DESCRIPTIVE STATISTICS
• DATA
• DESCRIPTIVE STATISTICS
• METHODOLOGY
• BINARY LOGISTIC REGRESSION
• MULTINOMIAL LOGISTIC REGRESSION
• PRECONDITIONS FOR THE LOGISTIC REGRESSION
• RESULTS
• BINARY LOGISTIC REGRESSION
• CASH PAYMENTS VS. SHARE PAYMENTS
• CASH PAYMENTS VS. MIXED PAYMENTS
• SHARE PAYMENTS VS. MIXED PAYMENTS
• MULTINOMIAL LOGISTIC REGRESSION
• CRITICAL REFLECTION
• CONCLUSION

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This master thesis investigates the choice of payment method in German mergers and acquisitions (M&A), aiming to identify the most influential determinants. The focus is on bidder-, acquisition-, and business cycle characteristics. The objective is to analyze empirical data from 207 German acquisitions between January 2003 and December 2010.

• Examining the choice of payment method in German M&A.
• Identifying key determinants influencing the choice of payment method.
• Analyzing the impact of bidder characteristics, such as financial leverage, asset size, and cash holdings.
• Investigating the role of acquisition characteristics, such as cross-border transactions and target listing status.
• Assessing the influence of business cycle characteristics, such as stock market performance.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 introduces the German M&A market and its historical development, highlighting its significance and key drivers. Chapter 2 defines M&A and its transaction process, providing a detailed explanation of various payment methods, including cash, shares, and mixed payments. This chapter also discusses the relationship between method of payment and mode of financing. Chapter 3 reviews existing literature on the choice of payment method, identifying key determinants and formulating hypotheses based on previous research. Chapter 4 presents the dataset used in the analysis, including data sources, selection criteria, and descriptive statistics. Chapter 5 outlines the statistical methods employed in the study, including binary and multinomial logistic regression models.

Schlüsselwörter (Keywords)

The main keywords of this thesis include mergers and acquisitions, payment methods, cash payments, share payments, mixed payments, bidder characteristics, acquisition characteristics, business cycle characteristics, logistic regression, and German M&A market. The research focuses on identifying the factors that influence the choice of payment method in German M&A, drawing insights from existing theoretical frameworks and empirical studies.