Silke Schmid Book order

The dissertation investigates the cumulative abnormal return (CAR) for Swedish and German bidders in mergers and acquisitions, focusing on the impact of payment methods, including cash, stock, and earnouts. Analyzing 927 transactions from 1986 to 2012, it finds that earnout deals, particularly those with smaller relative earnout values and shorter earnout lengths, tend to outperform others. The study also concludes that using earnouts can mitigate valuation risk and enhance value gains for shareholders, supporting the hypothesis that cash combined with earnouts is a superior financing method.

The study investigates the cumulative abnormal return (CAR) for Swedish and German bidders, focusing on the influence of payment methods, specifically cash, stock, and the emerging earnout structure. Analyzing a sample of 927 transactions, which includes 346 bids from German acquirers and 581 from Swedish ones, it also examines 24 German and 49 Swedish earnout deals. The research spans transactions from January 1, 1986, to December 31, 2012, involving domestic and foreign targets across various listing statuses.