We study the effects of takeover feasibility on asset prices and returns in a unified framework. We show theoretically that takeover protections increase equity risk, stock returns, and bond yields by removing a valuable put option to sell the firm, notably for firms approaching distress. We inv...
Anti-takeover protections reduce the threat of hostile takeovers but both theory and empirical evidence suggest that they also strengthen the bargaining position of the target for the benefit of target shareholders. Finally, it is important to keep in mind that hostile takeovers are difficult to ...
2) whether raiders should be required to buy out minority shareholders; 3) whether takeovers may result in the partial expropriation of other inadequately protected claims on the corporation, and if so, whether some anti-takeover amendments may be justified as basic protections against expropriation;...
How do private equity firms and hedge funds that seek shorter term returns on their investments benefit from shareholder protections? Their interest would be better served in a takeover if the UK and EU types of mandatory bid requirement were imposed at a lower level. Likewise, the Delaware typ...
C. Profit Forecasts, Profit Estimates, Quantified Financial Benefits Statements and Asset Valuations During the course of an offer, the bidder or target may publish a profit forecast or asset valuation, or already may have a profit forecast "on the record" which needs to be repeated and ...
Takeover Protections and Asset Prices We study the effects of takeover feasibility on asset prices and returns in a unified framework. We show theoretically that takeover protections increase e... A Eisdorfer,E Morellec,A Zhdanov - 《Management Science》 被引量: 0发表: 2024年 SC Adds New Tw...
actions or investments constitute “entrenchment behavior” and which do not. It is therefore impossible to say conclusively whether current regulations permitting anti-takeover amendments, which both facilitate managerial entrenchment and provide protections supporting informal agreements, are beneficial overall...