SAMPLE SELECTION BIAS IN MERGERS AND ACQUISITIONS: THEORETICAL AND EMPIRICAL CONSIDERATIONS

Yasser Alhenawi

《Advances in Quantitative Analysis of Finance and Accounting》 18期 (2021/12) Pp. 97-133

https://doi.org/10.6293/AQAFA.202112_(18).0004

摘要

Given the centrality of sample selection bias treatments in mergers and acquisitions (M&A) analyses, a periodical stocktaking of our theoretical and empirical knowledge is necessary. This paper describes the sources of selection bias and its implications for inference in M&A analyses. Selection bias arises not only exogenously, but also endogenously due to the complexity of the underlying economic phenomenon. The Heckman model is reintroduced with M&A-specific intuitions, and several empirical considerations are explained. A few powerful variations of the baseline model are discussed. The goal is to help M&A researchers to apply the Heckman procedure, assess its empirical validity, and interpret it correctly.

關鍵字

Mergers and Acquisitions (M&A) ； Corporate Finance ； Sample Selection Bias ； Heckman Model

參考文獻

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