We document that penny stock firms' acquisition likelihood increases with firm size, sales growth, free cash flow, stock price volatility, and run-up, but decreases with leverage, the number of years since IPO, and Tobin's Q. These findings are validated in a stepwise regression framework and are robust to alternative model specifications. Penny stock acquirers prefer private targets and are more (less) likely to use stocks (cash) as the payment method. We also find that acquisitions announcement returns are higher for penny stock firms than for non-penny stock firms, even after accounting for firm- and deal-characteristics. Further analyses indicate that the increase in announcement returns is driven by the firm's improved information environment. Overall, we document that penny stock firms are significant players in the market for corporate control.

我们记录表明，细价股公司的收购可能性随着公司规模、销售增长、自由现金流、股价波动和上涨而增加，但随着杠杆率、首次公开募股以来的年数和托宾 Q 值而降低。这些发现得到了验证在逐步回归框架中，并且对替代模型规范具有鲁棒性。低价股收购者更喜欢私人目标，并且更有可能（更少）使用股票（现金）作为支付方式。我们还发现，即使在考虑了公司和交易特征之后，细价股公司的收购公告回报率也高于非细价股公司。进一步分析表明，公告收益的增长是由于公司信息环境的改善所推动的。总体而言，我们记录了细价股公司是公司控制权市场中的重要参与者。