Atanasov, Vladimir; Black, Bernard; Ciccotello, Conrad; … - In: Journal of Financial Economics 96 (2010) 1, pp. 155-173
We model and test the mechanisms through which law affects tunneling and tunneling affects firm valuation. In 2002, Bulgaria adopted legal changes which limit equity tunneling through dilutive equity offerings and freezeouts. Following the changes, minority shareholders participate equally in...