Changes
Jump to navigation
Jump to search
VC Acquisitions Paper (view source)
Revision as of 17:14, 19 February 2012
, 17:14, 19 February 2012no edit summary
The program committee includes: Thomas Hellmann, Adam Jaffe, Bill Kerr, Josh Lerner, David Robinson, Morten Sorenson, Bob Strom, and others.
==Rebuilding the Paper==
The paper requires a complete rebuild of all the results, with the data updated to the end of 2011. We should also consider several extensions to the paper, detailed in a later section.
===Main Data===
Acquisitions (from SDC):
*Events from 1980-2011 that meet the following criteria:
**Acquirer is publicly traded on the AMEX, Nasdaq or NYSE
**Target is privately-held prior to acquisition (note: new restriction - target was not an LBO)
**Acquisition is for 100% of the firm
**Acqisition is complete before end of January 2012
Subsequent restriction: Drop acquisitions where market value of assets is negative or very small compared with the TV.
Venture Capital (from VentureXpert):
*Portfolio companies that received VC from 1975-2011. Must not be LBOs.
*LBOs from 1975 to 2011 to ensure that they are not in the control group of privately-held non-VC backed firms)
Returns:
*Stock returns for 1 year (250 Calendar days) for the acquirer, ending 30 days before the announcement. This will be the estimation window.
*Market returns for the same period
*Stock returns for 7 days beginning 3 days before the announcement and ending 3 days after
Note: an observation must have 50 days of continuous trading in the estimation window, and be traded in the event window, to be included.
===Supplementary Data===
===Raw Variables===
From SDC:
*Transaction Value
*Payment Method
*Acquisition announcement date
*Acquisition announcement year
*Total assets of acquirer
*Payment method (cash/stock/mix)
From
===Calculated variables===
Returns:
*<math> AR_i = R_i- (\hat{\alpha_i} + \hat{\beta_i}R_m </math>
*<math> AR^S_i = R_i - R_m </math>
*Boom: <math>1990\le year \le 1999</math>
*Leverage: <math>\frac{Op.\;Income}{Net\;Income}
