VGSF - WU Vienna - LC

Brendan Daley, Johns Hopkins University

Campus WU D3.0.225 11:00 - 12:30

Organizer VGSF

As part of the ser­ies of the "Fin­ance Re­search Sem­inar", VGSF wel­comes Brendan Da­ley from the Johns Hop­kins Uni­versity to present his re­search pa­per.
Per­sonal Webpage

Pa­per

Due Di­li­gence

Large trans­ac­tions often in­clude the pro­vi­sion that the buyer has the right to con­duct a due di­li­gence in­vest­ig­a­tion or audit to bet­ter dis­cern the value of ac­quir­ing the tar­get. We study a model of this pro­cess and its af­fect on prices, deal com­ple­tion, and ef­fi­ciency. We in­vestig­ate the role of asym­met­ric in­form­a­tion, ad­di­tional fea­tures of the pur­chase of­fer (such as break­-up fees), and the possib­il­ity of rene­go­ti­ation while con­duct­ing due di­li­gence.



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