Do firms with excess cash pay higher premia?
This study implements a quantitative approach. For calculating excess cash we use Opler et al. (1999) approach. For bid premia model we use Alexandridis et al. (2013) approach. Testing our hypothesis we use regression analysis. We also include a survivorship bias approach. Public acquisitions by firms in the S&P 500 index; we also include dropped firms to bypass survivorship bias. Henceforth w
