Investors’ Valuation of Corporate Acquisitions as Joint Investment and Financing Decisions Vefa Tarhan Paul A. Spindt Tom Nohel** Tarhan and Nohel are at Loyola University of Chicago and Spindt is at the A.B. Freeman School of Business, Tulane University. Please address all correspondence to Paul A. Spindt, A.B. Freeman School of Business, Tulane University, New Orleans, LA 70118. Tel. (504) 865-5413; Fax: (504) 865-6751; Email: SPINDT@MAILHOST.TCS.TULANE.EDU. May 21, 1998 Keywords: Mergers and acquisitions; form of payment; mode of acquisition JEL classification: G12; G14; G24; G32 **We thank Jon Garfinkel, Thomas Noe, Artur Raviv, and Venkat Subramaniam, as well as seminar participants at Loyola University and Northwestern University, for many helpful suggestions and comments. We also thank Hyun-Mo Sung for supplying us his data set, which was used in the initial draft of this paper.