Cristin-prosjekt-ID: 473995
Sist endret: 17. august 2016, 13:15

Cristin-prosjekt-ID: 473995
Sist endret: 17. august 2016, 13:15
Prosjekt

Who initiates corporate takeovers?

prosjektleder

Øyvind Norli
ved Institutt for finans ved Handelshøyskolen BI

prosjekteier / koordinerende forskningsansvarlig enhet

  • Institutt for finans ved Handelshøyskolen BI

Klassifisering

Vitenskapsdisipliner

Økonomi

Kategorier

Prosjektkategori

  • Anvendt forskning

Tidsramme

Avsluttet
Start: 1. april 2011 Slutt: 31. desember 2017

Beskrivelse Beskrivelse

Tittel

Who initiates corporate takeovers?

Vitenskapelig sammendrag

The presumption in the takeover literature is that the transaction is initiated by a bidder: the bidder moves first and the target board responds. However, based on SEC filings of completed takeovers of publicly traded targets over the period 1996-2006, we show that the bidder initiated the takeover process in only 40% of the cases, while the target initiated 40% of the time. The remaining 20% represent mostly joint initiations ("mergers of equals") and target shareholders activists.

Being a first-mover in the takeover game affects bargaining power. In this project proposal we suggest to investigate how bidding strategies and bid outcomes depend on the initiating party. Our hypotheses are:

  1. Target-initiated takeovers involve early-stage auction (prior to the first public bid), which in turn lead to greater average takeover premiums.
  2. The low incident of bidder-initiated takeovers is a response to the widespread deployment of costly takeover defenses.
  3. Targets initiating a takeover tend to have small board size, high degree of director independence, low anti-takeover provisions, and high pay-performance incentives.

prosjektdeltakere

prosjektleder

Øyvind Norli

  • Tilknyttet:
    Prosjektleder
    ved Institutt for finans ved Handelshøyskolen BI

B. Espen Eckbo

  • Tilknyttet:
    Prosjektdeltaker
    ved Dartmouth College

Karin S. Thorburn

  • Tilknyttet:
    Prosjektdeltaker
    ved Institutt for finans ved Norges Handelshøyskole
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