-controlling investors. This, in turn, increases the acquirer's capacity to raise outside funds to finance the takeover. Absent effective … effective competition, the increased outside funding capacity makes it less likely that the takeover outcome is determined by … ability to create value. Accordingly, stronger legal investor protection can improve the efficiency of the takeover outcome …

restructuring firms directly. Such takeover activism should record superior returns as its opportunity cost includes the foregone …

-controlling investors. This, in turn, increases the acquirer's capacity to raise outside funds to finance the takeover. Absent effective … effective competition, the increased outside funding capacity makes it less likely that the takeover outcome is determined by … to create value. Accordingly, stronger legal investor protection can improve the efficiency of the takeover outcome …

incorporate financing constraints and legal investor protection into a standard takeover model. In the model, stronger legal … provides a novel rationale for the optimality of “one hare-one vote,” shows that margin requirements impair takeover efficiency … while shadow costs of internal funds improve it, and makes empirical predictions relating the takeover outcome to, e …