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

and the acquirer’s size. 
Large firms tend to have relatively easier access to capital markets than small firms. Thus, larger firms 
may be more likely to issue stock to finance an acquisition than smaller firms. 
DATA & METHODOLOGY 
Acquiring Firms 
The sample of acquiring firms was drawn from the Securities Data Corporation (SDC) International Merger 
and Acquisition Database (SDC-IMAD) for the period 1980-2004. To be included in the study sample, the 
observations had to satisfy the following conditions: 1) both the acquiring firm and the target were classified as 
belonging to one of the following SIC codes: 5812 (restaurant) or 7011(hotel) 2) the transaction was successfully 
completed, and 3) the payment type was all cash or all stock. All cash and all stock deals paid 100% of stock or 
cash to the target respectively. Also, since firm related variables for this study are drawn from the Compustat 
Industrial Annual Files, the acquirer had to be listed in the Compustat data base.
Although the SDC database provides 1,522 hospitality acquisition observations for the period of 1980-
2004, only 363 observations (all cash or all stock payment) were used for analysis due to the lack of corresponding 
data in the Compustat Industrial Annual Files (Table 1). The final sample includes 336 acquisition observations 
(with all cash financing representing 279 observations and all stock financing representing 57 observations