Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
Cash Financing and Firm Size 
Another issue that may impact hospitality firm acquisition decision making in the context of the payment 
type offer is the firm’s size and the implications that size has for access to financial capital. Larger firms with lower 
relative cash levels and easier access to the financial markets may be more inclined than smaller firms to use stock 
acquisition offers as opposed to cash offers (Opler, Pinkowitz, Stulz & Williamson 1999). This would suggest an 
inverse relationship between firm size and the use of a cash payment in an acquisition.