Introduced in the European Union, the equal opportunity rule is seen as protecting investors in the event of a transfer of control. This rule is analyzed in a setting of information asymmetry and future private benefits between the new controlling shareholders and the outside investors. Both...

This paper looks at the combination of cash and share payment in takeovers, particularly in analyzing the condition of its optimal mix setting. This problem develops in a context of asymmetry of information for the buyer has lower information on the target firm than the sellers. But the bidder...

Debt is traditionally analyzed as disciplinary in the shareholders-manager conflict. It is less commonly analyzed in relation to controlling and outside shareholders. This paper shows that the joint problematics of ownership, private benefits and debt leverage are linked in a framework of...

We test two forms of consumption-based asset pricing model on American bond market data. The first is the standard C-CAPM, the other one is derived from Abel (1999) who refers to an external habit. The term premium embedded in the term structure of interest rate is linked with the conditional...

The leverage of control is the possibility for the controlling shareholder to lower his direct participation in capital through a convergence of financial interest with other stakeholders in the firm. In this paper we want to analyze the plans of stock ownership as a tool for a leverage of...

In this paper, we will not consider shareholders as a global group, but we distinguish controlling and outside investors. The managers and the controlling shareholders elaborate and take the strategic decisions of the firm and appropriate for themselves a part of the gross economic profit. The...

The active management of a portfolio should not be appreciated only in term of excess profitability vis-a-vis a reference benchmark. It is a matter for a complete process where upstream is supposed to exist the manager's superior expertise. This skill is analyzed as a forecasting ability and...

In this paper, we develop a contingent claim analysis concerning both inside and outside shareholders' rights to sell their shares at the acquisition bid price. We will show that this regulation brings about wealth transfer towards inside shareholders (compared to a situation without any...

Stock options plans are used to increase managerial incentives. The main question is to determine whether there exists an optimal incentive contract, which means a contract satisfying both managers and shareholders. First, the cash-flow gain created by the managers' effort is supposed known by...