The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Corporate Cash Reserves and Acquisitions
Open accessAbstract
Cash‐rich firms are more likely than other firms to attempt acquisitions. Stock return evidence shows that acquisitions by cash‐rich firms are value decreasing. Cash‐rich bidders destroy seven cents in value for every excess dollar of cash reserves held. Cash‐rich firms are more likely to make diversifying acquisitions and their targets are less likely to attract other bidders. Consistent with the stock return evidence, mergers in which the bidder is cash‐rich are followed by abnormal declines in operating performance. Overall, the evidence supports the agency costs of free cash flow explanation for acquisitions by cash‐rich firms.
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Cites
Corporate financing and investment decisions when firms have information that investors do not have
Myers, S. C., & Majluf, N. S. (1984) · Journal of Financial Economics · doi:10.1016/0304-405x(84)90023-0 · Cited by 18,957
Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have
Myers, S., & Majluf, N. (1984) · doi:10.3386/w1396 · Cited by 6,745
A Model of the Demand for Money by Firms
Miller, M. H., & Orr, D. (1966) · The Quarterly Journal of Economics · doi:10.2307/1880728 · Cited by 1,340
Cited by
The effects of financial reporting and disclosure on corporate investment: A review
Roychowdhury, S., Shroff, N., & Verdi, R. S. (2019) · Journal of Accounting and Economics · doi:10.1016/j.jacceco.2019.101246 · Cited by 749
Is working capital management value-enhancing? Evidence from firm performance and investments
Aktas, N., Croci, E., & Petmezas, D. (2015) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2014.12.008 · Cited by 534
Enqvist, J., Graham, M., & Nikkinen, J. (2014) · Research in International Business and Finance · doi:10.1016/j.ribaf.2014.03.005 · Cited by 483
Arm’s Length Financing and Innovation: Evidence from Publicly Traded Firms
Atanassov, J. (2016) · Management Science · doi:10.1287/mnsc.2014.2097 · Cited by 157
The cost of financial flexibility: Evidence from share repurchases
Bonaimé, A. A., Hankins, K. W., & Jordan, B. D. (2016) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2016.02.002 · Cited by 68
Metadata
- Authors
- Harford, J.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1999-12
- Volume
- 54
- Issue
- 6
- Pages
- 1969-1997
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W3121250421
- Cited by
- 2,064
- References
- 3
- FWCI
- 47.57
- Type
- journal article
- Language
- en
- Open access
- green
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- Harford, J. (1999). Corporate Cash Reserves and Acquisitions. The Journal of Finance. https://doi.org/10.1111/0022-1082.00179
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
