Merger proposals, managerial discretion, and magnitude of shareholders' wealth gains
Recently, the market for corporate control has attracted much attention. Scholars have attempted to ascertain whether managerial resistance is in the interests of shareholders. This study compares the average actual changes in wealth of accepted merger proposals with those of rejected merger proposa...
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Published in | Journal of economics and business Vol. 39; no. 3; pp. 251 - 266 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Philadelphia, Pa
Elsevier Inc
01.08.1987
Elsevier Temple University Elsevier Science Ltd |
Series | Journal of Economics and Business |
Subjects | |
Online Access | Get full text |
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Summary: | Recently, the market for corporate control has attracted much attention. Scholars have attempted to ascertain whether managerial resistance is in the interests of shareholders. This study compares the average actual changes in wealth of accepted merger proposals with those of rejected merger proposals. It also compares the realized changes in shareholder wealth of the rejected proposals with the realizable shareholder wealth changes. In either case, managerial resistance leads to smaller gains in wealth. Based on these results, we cannot reject the view that managerial resistance is detrimental to the interests of shareholders. |
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ISSN: | 0148-6195 1879-1735 |
DOI: | 10.1016/0148-6195(87)90021-X |