Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/19045
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dc.contributor.authorAgarwal, Nipunen
dc.contributor.authorKwan, Paul Hen
dc.date.accessioned2016-05-24T16:24:00Z-
dc.date.issued2017-
dc.identifier.citationEconomics, Management, and Financial Markets, 12(1), p. 55-67en
dc.identifier.issn1938-212Xen
dc.identifier.issn1842-3191en
dc.identifier.urihttps://hdl.handle.net/1959.11/19045-
dc.description.abstractMergers and acquisitions (M&A) are undertaken to improve efficiencies or increase economies of scale and scope. Prices offered by buyers can depend on the personality of the buyer (acquiring firm) and seller (target firm). This paper tries to model these differences in prices offered for M&A deals using agent-based modeling and considers risk-averse - risk-taking behavior of buyers and optimistic - pessimistic behavior of sellers. Further, if we add to this the situation of a hostile takeover, it tends to complicate the pricing even more. This paper uses agent-based modeling to analyze a hostile takeover while considering the risk-averse - risk-taking behavior of the acquirer and optimistic - pessimistic behavior of the target firm. Results show that risk-taking buyer will pay higher prices and optimistic sellers will demand higher prices. As a result, sellers obtain the highest premium when these behavior traits exist. Also, sellers receive higher prices when the business cycle is improving, while, receiving the lowest premium during the business cycle trough or peak as buyers know that sellers have limited options during troughs and buyers are afraid of paying too much to merger or acquire a seller during business cycle peaks. Also, results show that as the hostile takeover characteristic of the acquirer increases, it puts downward pressure on the final price paid to purchase the target firm. This specifically comes under play when the target firm is less optimistic, the target firm's shareholders will usually accept a lower price compared to when they are more optimistic and hold out for a better offer.en
dc.languageenen
dc.publisherAddleton Academic Publishersen
dc.relation.ispartofEconomics, Management, and Financial Marketsen
dc.titlePricing Mergers & Acquisitions Using Agent-Based Modelingen
dc.typeJournal Articleen
dc.subject.keywordsExperimental Economicsen
dc.subject.keywordsSimulation and Modellingen
dc.subject.keywordsFinancial Economicsen
local.contributor.firstnameNipunen
local.contributor.firstnamePaul Hen
local.subject.for2008140206 Experimental Economicsen
local.subject.for2008140207 Financial Economicsen
local.subject.for2008080110 Simulation and Modellingen
local.subject.seo2008900102 Investment Services (excl. Superannuation)en
local.subject.seo2008970108 Expanding Knowledge in the Information and Computing Sciencesen
local.subject.seo2008970114 Expanding Knowledge in Economicsen
local.profile.schoolSchool of Science and Technologyen
local.profile.emailnagarwal@une.edu.auen
local.profile.emailwkwan2@une.edu.auen
local.output.categoryC1en
local.record.placeauen
local.record.institutionUniversity of New Englanden
local.identifier.epublicationsrecordune-20160520-101455en
local.publisher.placeUnited States of Americaen
local.format.startpage55en
local.format.endpage67en
local.peerreviewedYesen
local.identifier.volume12en
local.identifier.issue1en
local.contributor.lastnameAgarwalen
local.contributor.lastnameKwanen
dc.identifier.staffune-id:nagarwalen
dc.identifier.staffune-id:wkwan2en
local.profile.roleauthoren
local.profile.roleauthoren
local.identifier.unepublicationidune:19243en
dc.identifier.academiclevelAcademicen
dc.identifier.academiclevelAcademicen
local.title.maintitlePricing Mergers & Acquisitions Using Agent-Based Modelingen
local.output.categorydescriptionC1 Refereed Article in a Scholarly Journalen
local.relation.urlhttp://www.addletonacademicpublishers.com/contents-emfm/743-volume-12-1-2017/2771-pricing-mergers-acquisitions-using-agent-based-modelingen
local.search.authorAgarwal, Nipunen
local.search.authorKwan, Paul Hen
local.uneassociationUnknownen
local.year.published2017en
local.fileurl.closedpublishedhttps://rune.une.edu.au/web/retrieve/da72742b-173a-40ff-8b27-b0bfb8926465en
local.subject.for2020380106 Experimental economicsen
local.subject.for2020380107 Financial economicsen
local.subject.for2020460207 Modelling and simulationen
local.subject.seo2020110202 Investment services (excl. superannuation)en
local.subject.seo2020280115 Expanding knowledge in the information and computing sciencesen
local.subject.seo2020280108 Expanding knowledge in economicsen
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