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Does the Mandatory Bid Rule Add Value to Target Shareholders?

Eswar, Sapnoti - 2019

participate in a takeover transaction at equal terms – affects target announcement returns. I use a difference …

Persistent link: https://www.econbiz.de/10012904998

Corporate Blockholders and Financial Leverage

Bui, Thuy - 2018

This research investigates the relationship between corporate block ownership and firm financial leverage. Corporate blockholders, which are nonfinancial firms who hold more than five percent equity in a target industrial firm, can affect the target firm's policies through their business...

Persistent link: https://www.econbiz.de/10012911552

Managerial Control Benefits and Takeover Market Efficiency

Wang, Wenyu - 2019

How and to what extent do managerial control benefits shape the efficiency of the takeover market? We revisit this … dark side, managers' private benefits of control distort firms' takeover incentives and hinder the reallocation role of the … takeover market. On the bright side, fear of a takeover induces underperforming managers to exert more effort and enhances the …

Persistent link: https://www.econbiz.de/10012898784

Oligarchs, Foreign Powers and the Oppressed Minority : Regulating Corporate Control in Latin America

Berdejó, Carlos - 2019

Corporate law and governance scholarship has traditionally focused on understanding the agency costs that result from unresolved conflicts of interest between shareholders and management. This agency problem becomes trivial when corporate ownership is concentrated, as is the case in many...

Persistent link: https://www.econbiz.de/10012871106

The Governance Transfer of Blockholders : Evidence from Block Acquisitions and Earnings Management around the World

Dai, Lili - 2017

We examine the governance transfer effect of corporate blockholders in a sample of 892 block acquisitions across 42 countries from 1990 to 2008. Using earnings management as a proxy for corporate governance outcome, we find that target firms' earnings management is aligned with that of block...

Persistent link: https://www.econbiz.de/10012974044

Transfers of Corporate Control in Firms with Non-Controlling Blockholders

Stepanov, Sergey - 2017

I model the choice between a negotiated block trade and a public tender offer as means of acquiring control in a firm with a large minority blockholder. Potential acquirers differ in their (privately known) value-creation ability. In equilibrium, block trades are made by lower ability acquirers...

Persistent link: https://www.econbiz.de/10012974811

Large Shareholders and Value Creation Through Corporate Acquisitions in Europe. The Identity of the Controlling Shareholder Matters

Craninckx, Katrien - 2015

We investigate whether and how major shareholders influence M&A wealth effects for listed acquirers in Europe. To that end, we examine 342 intra-European takeovers of listed target firms announced between 1997 and 2007. We find that family-controlled acquiring firms on average engage in deals...

Persistent link: https://www.econbiz.de/10013012199

Takeover Defenses : Entrenchment and Efficiency

Bhojraj, Sanjeev - 2014

This paper explores the potential role of anti-takeover provisions (ATPs) in long-term value creation. Using multiple … research designs, we find that long-term focused (innovative) firms benefit from takeover protection. We also find that the …

Persistent link: https://www.econbiz.de/10013049867

Blockholder Ownership and Corporate Control : The Role of Liquidity

Gerken, William Christopher - 2014

Employing an instrumental variable approach based on the regulatory change of tick sizes, I examine the link between the liquidity of a firm's equity and activism by large shareholders. I find that liquidity increases the likelihood of block formation. Blockholders of more liquid securities take...

Persistent link: https://www.econbiz.de/10013051337

How Do Corporate Control Rights Transactions Create Shareholder Value? Evidence from China

Dong, Liping - 2014

We investigate the stock price performance of companies that become a block trade target in China where unique institutional characteristics exist. As with US evidence, stock prices of target companies positively react to the announcement of block trades. The positive effect of block trades...

Persistent link: https://www.econbiz.de/10013058715