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  • Matthew Rhodes, Kropf, David T Robinson, S Viswanathan, Audra Boone, Serguey Braguinsky +18 others
  • 2002
To test recent theories suggesting that valuation errors affect merger activity, we develop a decomposition that breaks the market-to-book ratio (M/B) into three components: the firm-specific pricing deviation from short-run industry pricing; sector-wide, short-run deviations from firms' long-run pricing; and long-run pricing to book. We find strong support(More)
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