An Analysis Of Stock-for-Stock Mergers And Acquisitions By Listed Companies

This thesis examines the economic factors involved instock-for-stock acquisitions of a non-public entity by a public firm.Specifically, I analyze the economic motivations, financial conditions,impact on decision and voting rights, tax, financial reporting, andinformation disclosure of both the acquirer and the target company insuch deals and compare them with those in cash-based acquisitions. I alsodiscuss the determinants and disclosure of valuation models andexchange ratios in stock-for-stock acquisitions. I provide theoreticaldiscussions of these issues as well as empirical evidence based on thestock-for-stock acquisition of WYKJ by LSC.