원문정보
초록
영어
This paper presents a model of corporate takeovers in a framework of auctions with multidimensional signals. The model considers a target firm whose value for each bidder is composed of both common and private values. A key novel feature of our model is that bidders privately observe a noisy signal that is positively but imperfectly correlated with the common value. Absent a noisy signal, which is true in most extant studies of common value auctions, bidders would be informed of a common value factor that is independent of each other. A symmetric equilibrium is developed where inefficient takeovers may take place because information regarding common value cannot be aggregated. Furthermore, we show that there is a non-monotonic relationship between the probability of inefficient takeovers and the precision of information.
목차
1. INTRODUCTION
2 THE BASIC MODEL
2.1 The Market for Corporate Control
2.2 Information Structure
2.3 The bidding process and the sequence of events
3. BENCHMARK: THE PURE COMMON VALUE AUCTION
3.1 The common value
3.2 Bidding strategies and a symmetric equilibrium
4. MULTIDIMENSIONAL SIGNALS AND INEFFICIENT CORPORATE TAKEOVERS
4.1 Inefficient takeovers
4.2 Information precision and the probability of inefficient takeovers
5. CONCLUSION
Appendix
REFERENCES