The winner’s curse — overestimating the value of an asset and therefore overpaying — is often associated with acquisitions of publicly-traded firms but not with private acquisitions. Using an event study methodology for over 22,000 private acquisitions of U.S. firms between 1985 and 2015, the authors examine a possible winner’s curse for such acquisitions, testing variables to determine what characteristics make a private company more likely to overestimate the asset's value.
In this blog post, Mexico Center director Tony Payan discusses the results of Mexico's June 5 election and what they mean for the country's 2018 presidential election.
While Mexico may indeed emerge from the recent oil price slump in better shape than most, tinkering with the solid macroeconomic foundations established by the country’s last three administrations could lead to trouble.
Baker Institute experts explain how Friday's arrest of Mexican drug lord Joaquin "El Chapo" Guzman will affect the Peña Nieto administration, the Sinaloa Cartel and the Mexican government's "kingpin strategy" to destroy the cartels.
Tony Payan, Gary J. Hale, Nathan P. JonesJanuary 9, 2016
In the current absence of direct negotiations, the Obama administration has an opportunity to reshape the Israeli-Palestinian negotiating framework, according to a report by the Conflict Resolution Program at Rice University’s Baker Institute for Public Policy. The report recommends that the administration continue to demonstrate strong U.S. support for the two-state model, test the willingness of the parties to compromise and adopt a more comprehensive approach to resolving the conflict with the support of the international community.
Edward P. Djerejian, Yair Hirschfeld, Samih Al-AbidJuly 8, 2015
Regenerative medicine and stem cell research are exciting new fields. But as the fields progress toward clinical therapies, controversies emerge. Hype surrounding stem cell research has caused an increase in their use in interventions that are not clinically proven. Furthermore, the regulatory agencies have a lot of difficulty dealing with cell therapies, which are distinctly different from drugs and medical devices they more commonly approve. To move the field forward, advocates, regulators and scientists need to come together to find new options for stem cell research oversight that protects both the patients and the research field.
