Abstract
In this article we examine the role of potential factors influencing the choice of payment method in takeover transactions of Malaysian acquirers. We document that the financial leverage, the size of acquiring firms, the relative size of the transactions to acquiring firms, and the high technology status of the targets are key determinants to explain the methods of payment in their transactions. Moreover, the acquirers are found to be able to use equity to finance their foreign M&A transactions during the credit constraint periods.
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