While there are economic motives and empirical support for spinoffs, about one in every four planned spinoffs is withdrawn. This study is the first to explain why some spinoffs are withdrawn. We find that the probability that a spinoff is withdrawn is inversely related to the share price...

We find that units are more likely to adopt poisonpills at the time of a spinoff if their parents have anti-takeover provisions in place. In addition, the probability that a spinoff unit adopts a poisonpill is negatively related to outside block ownership, but positively related to the size of...

Consistent with agency theory, we find that bidder managers make takeover financing decisions in ways that circumvent more effective monitors. Bidder managers are more likely to use cash rather than stock when targets have aggressive outside blockholders. We also find that the likelihood of a...

The price discount on privately placed stock is large and can vary substantially among firms. While earlier studies attribute price discounts on privately placed stock to illiquidity and costs of gathering information, we offer a more complete explanation. We find that firms exhibiting higher...

Purpose – Agency theory suggests that if managers are not monitored, takeover negotiations may be contaminated by agency conflicts, which may weaken a firm's bargaining position. This paper argues that some blockholders are more effective monitors than others, and tests whether the negotiating...