Elsevier

Journal of Banking & Finance

Volume 9, Issue 3, September 1985, Pages 351-362
Journal of Banking & Finance

The characteristics of takeover targets q and other measures

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Abstract

This study attempts to assess differences in the financial characteristics of target and non-target firms using logit analysis and a case-control methodology in which control groups are matched by size or industry. The results indicate that unregulated non-financial target firms are characterized by low q ratios (market/replacement values) and to a lesser extent high current financial liquidity. Measures of financial leverage were not found to be significant.

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  • Cited by (0)

    For comments on earlier drafts, I am indebted to Irwin Friend, Peter Linneman, workshops at the University of Washington, University of Oregon and the University of Texas, and the anonymous referees. All errors are my own responsibility.

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