Control Threat and Means of Payment: Evidence from Canadian Mergers and Acquisitions
Bibliographic record
Abstract
This study examines the relationship between family control and the means of payment choice for 358 Canadian mergers and acquisitions (M&A) undertaken during the period 1998-2004. We consider the interrelationships between control and risk reduction motivations and the percentage of cash offered by the bidder to finance the deal. Canada offers an interesting setting in which to examine the role of large family blockholders in financing choice given the high level of ownership concentration and governance mechanisms similar to those found in other English-origin countries. Stock payments can dilute the family’s blockholding. The results show a positive relationship between the family ultimate control stake and the percentage of cash financing. In contrast, we document a negative relationship between family use of control enhancing mechanisms and the likelihood of cash financing. Consistent with prior M&A research, we also find a positive relation between the bidder’s leverage capacity (as measured by the level of fixed assets) and the use of cash as a medium of exchange. Further, acquiring firms with good investment opportunities
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.016 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.002 | 0.004 |
| Science and technology studies | 0.004 | 0.002 |
| Scholarly communication | 0.002 | 0.001 |
| Open science | 0.001 | 0.001 |
| Research integrity | 0.001 | 0.001 |
| Insufficient payload (model declined to judge) | 0.004 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".