Luc Renneboog
Tilburg University
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Publication
Featured researches published by Luc Renneboog.
Journal of Corporate Finance | 2009
Marina Martynova; Luc Renneboog
While the means of payment in takeovers has been a focal point in the takeover literature, what has largely been ignored is the analysis of how the takeover bid is financed and what its impact is on the expected value creation of the takeover. This paper investigates the sources of transaction financing in European corporate takeovers launched during the period 1993- 2001 (the fifth takeover wave). Using a unique dataset, we show that the external sources of financing (debt and equity) are frequently employed in takeovers involving cash payments. Acquisitions with the same means of payment but different sources of transaction funding are quite distinct. For instance, a significantly negative price revision following the announcement of a takeover is not unique to the equity-paid MA it is also observed in any other deals that involve equity financing (including cash-paid and mixed-paid M&As). Also, acquisitions financed with internally generated funds significantly underperform those financed with debt. Our multinomial logit and nested logit analyses show that the takeover financing decision is influenced by the bidder’s pecking order preferences, its growth potential, and its corporate governance environment, all of which are related to the cost of external capital. There is also evidence that the choice of equity versus internal cash or debt financing is influenced by the bidder’s strategic preferences with respect to the means of payment. We find no evidence of financing decisions driven by agency conflicts between managers and shareholders or between shareholders and creditors.
Bijdragen | 2008
Christian Andres; André Betzer; Marc Goergen; Luc Renneboog
German firms pay out a lower proportion of their cash flows, but a higher proportion of their published profits than UK and US firms. We estimate partial adjustment models and report two major findings. First, German firms base their dividend decisions on cash flows rather than published earnings as (i)published earnings do not correctly reflect performance because German firms retain parts of their earnings to build up legal reserves, (ii) German accounting is conservative, (iii) published earnings are subject to more smoothing than cash flows. Second, to the opposite of UK and US firms, German firms have more flexible dividend policies as they are willing to cut the dividend when profitability is only temporarily down.
Journal of Corporate Finance | 2008
Marina Martynova; Luc Renneboog
Journal of Corporate Finance | 2008
Marc Goergen; Luc Renneboog
Journal of Empirical Finance | 2009
Marc Goergen; Luc Renneboog; L. Correia Da Silva
Other publications TiSEM | 2011
Luc Renneboog; Christophe Spaenjers
BMC Health Services Research | 2011
Marina Martynova; Luc Renneboog
Revista Panamericana De Salud Publica-pan American Journal of Public Health | 2008
Frédéric Palomino; Luc Renneboog; Chendi Zhang
Journal of the American Geriatrics Society | 2008
Luc Renneboog; Christophe Spaenjers
Journal of Public Economics | 2008
Marc Goergen; Luc Renneboog; Chendi Zhang