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Governance Arbitrage by Private Equity and Why it Occurs

Schofield, Guy - 2014

In this paper I test the proposition put forward by private equity players that they undertake “governance arbitrage”. This proposition suggests that public companies with weak governance are more likely to receive a buyout bid from a private equity (PE) firm.I find evidence that companies...

Persistent link: https://www.econbiz.de/10013039868

Shareholder Rights and Bidder Returns : The Impact of Market Learning and M&A Activity

Ahn, Seoungpil - 2016

I examine whether market learning and M&A activity affect the association between shareholder rights and acquisition performance. Using a sample of acquisitions completed in the period of 1990-2006, I find that the negative association between governance indices and bidder returns disappears in...

Persistent link: https://www.econbiz.de/10012980117

Takeover Defenses in the Era of Shareholder Activism

Shin, Sa-Pyung Sean - 2016

This paper examines the interplay between takeover defenses and shareholder activism. Using a comprehensive sample of … shareholder activism events between 2006 and 2014, I find a differential impact of takeover defense measures on the likelihood of … in place are more likely to become targets. Activists are more likely to demand removal of takeover defense measures and …

Persistent link: https://www.econbiz.de/10012982580

Hedge Fund Activism, Poison Pills, and the Jurisprudence of Threat

Bratton, William W. - 2016

This chapter reviews the single high profile case in which twentieth century antitakeover law has come to bear on management defense against a twenty-first century activist challenge — the Delaware Court of Chancery's decision to sustain a low-threshold poison pill deployed against an activist...

Persistent link: https://www.econbiz.de/10012983709

The Effect of Voluntary Governance Rating Disclosures on SEOs and Acquisitions

Arslan, Birgul - 2018

Voluntary disclosures play an increasingly larger role in the corporate world, yet their implications remain controversial. On the one hand, voluntary disclosures create value by decreasing information asymmetry between managers and investors. On the other hand, they may be used...

Persistent link: https://www.econbiz.de/10012913465

Private Company Acquisitions in the Market for Corporate Control : A Comparison between Private Equity and Corporate Acquirers

Gemson, Josephine - 2018

This study examines private company acquisitions from 2000-2016 in the light of the market for corporate control. The two dominant acquirers are corporate firms who seek to channel potential synergies long-term; and PE firms who acquire only to divest within a reasonable timeframe while...

Persistent link: https://www.econbiz.de/10012914277

The Role of Corporate Governance for Acquisitions by the Emerging Market Multinationals : Evidence from India

Col, Burcin - 2019

Acquisitions by emerging market firms of targets located in developed markets have increased drastically over the recent years. We use this setting to test Coffee's (1999) bonding hypothesis in a cross-border M&A context by examining whether acquirers adopt the corporate governance practices...

Persistent link: https://www.econbiz.de/10012901912

Officers’ Fiduciary Duties and Acquisition Outcomes

Reza, Syed Walid - 2019

Using a Delaware case law that recognized officers' distinct fiduciary duties (OFDs) for the first time in 2009, I examine the effect of OFDs on corporate acquisitions. I find that firms with entrenched officers prior to 2009 experienced increased announcement-period abnormal stock returns,...

Persistent link: https://www.econbiz.de/10012905387

Geographic Concentration of Institutional Investors and the Market for Corporate Control

Huang, Jiekun - 2019

shareholders experience significantly higher abnormal returns around the takeover announcement. In a similar vein, acquirer firms …

Persistent link: https://www.econbiz.de/10012905918

International Mergers and Acquisitions Laws, the Market for Corporate Control and Accounting Conservatism

Khurana, Inder K. - 2018

corporate takeover threat, this paper examines how a disciplinary market for corporate control affects accounting conservatism … shareholder protection and in those experiencing larger growth in takeover activity. Further analysis reveals that elevated … takeover threats increase conservatism through changes in capital structure and investment decisions as well as improvements in …

Persistent link: https://www.econbiz.de/10012909840