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This paper contrasts the recent European initiatives on regulating corporate groups with alternative approaches to the phenomenon. In doing so it pays particular regard to the German codified law on corporate groups as the polar opposite to the piecemeal approach favored by E.U. legislation. It...
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We study the relationship between opportunities for managerial diversion, corporate tax system parameters and the return on shareholder funds. Theoretically, in a simple game between corporate insiders and outsiders, higher costs of diversion increase the return. European firm-level data lend...
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We investigate whether and how major shareholders influence M&A wealth effects for listed acquirers in Europe. To that …-controlled acquiring firms on average engage in deals with substantially larger value creation, particularly in Continental Europe. However … owners across Europe cannot curb low-value acquisitions driven by managerial overconfidence. We relate this finding to the …
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