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The Distribution of Target Ownership and the Division of Gains in Successful Takeovers

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Author Info
Stulz, Rene M
Walkling, Ralph A
Song, Moon H

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Abstract

This paper presents evidence that the distribution of target ownership is related to the division of the takeover gain between the target and the bidder for a sample of successful tender offers. In the whole sample, the target's gain is negatively related to bidder and institutional ownership. In the sample of multiple-bidder contests, the target's gain increases with managerial ownership and falls with institutional ownership. Copyright 1990 by American Finance Association.

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Publisher Info
Article provided by American Finance Association in its journal Journal of Finance.

Volume (Year): 45 (1990)
Issue (Month): 3 (July)
Pages: 817-33
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Handle: RePEc:bla:jfinan:v:45:y:1990:i:3:p:817-33

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  1. Ana I. Fernández & Silvia Gómez-Ansón, 1999. "Un estudio de las Ofertas Públicas de Adquisición en el mercado de valores español," Investigaciones Economicas, Fundación SEPI, vol. 23(3), pages 471-495, September. [Downloadable!]
  2. Lindqvist, Tobias, 2004. "Mergers by Partial Acquisition," Working Paper Series 630, Research Institute of Industrial Economics. [Downloadable!]
  3. David A. Becher & Terry L. Campbell II, 2004. "Corporate governance of bank mergers," Proceedings, Federal Reserve Bank of Chicago, issue May, pages 267-287. [Downloadable!]
  4. Matilde Fernández-Blanco & C. José García Martín, 2000. "La compra de volúmenes significativos de acciones en el mercado español," Investigaciones Economicas, Fundación SEPI, vol. 24(1), pages 237-267, January. [Downloadable!]
  5. Aigbe Akhigbe & Jeff Madura & Carolyn Spencer, 2004. "Partial acquisitions, corporate control, and performance," Applied Financial Economics, Taylor and Francis Journals, vol. 14(12), pages 847-857, August. [Downloadable!] (restricted)
  6. Han T.J. Smit & Ward A. van den Berg & Wouter De Maeseneire, 2004. "Acquisitions as a Real Options Bidding Game," Tinbergen Institute Discussion Papers 04-084/2, Tinbergen Institute, revised 23 Feb 2005. [Downloadable!]
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  7. Jandik, Tomas & Makhija, Anil K., 2005. "The Impact of the Structure of Debt on Target Gains," Working Paper Series 2005-5, Ohio State University, Charles A. Dice Center for Research in Financial Economics. [Downloadable!]
  8. Ann B. Gillette & Thomas H. Noe, 2000. "If at first you don't succeed: an experimental investigation of the impact of repetition options on corporate takeovers," Working Paper 2000-9, Federal Reserve Bank of Atlanta. [Downloadable!]
  9. Molin, Johan, 1996. "Optimal deterrence and inducement of takeovers: An analysis of poison pills and dilution," Working Paper Series in Economics and Finance 102, Stockholm School of Economics. [Downloadable!]
  10. Linda Allen & Julapa Jagtiani & Stavros Peristiani & Anthony Saunders, 2002. "The role of bank advisors in mergers and acquisitions," Staff Reports 143, Federal Reserve Bank of New York. [Downloadable!]
  11. Jorge Farinha & Francisco Miranda, 2003. "Run-up, toeholds, and agency effects in mergers and acquisitions: evidence from an emerging market," CETE Discussion Papers 0311, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  12. Sven-Olof Fridolfsson & Johan Stennek, 2001. "Why Mergers Reduce Profits and Raise Share Prices: A Theory of Preemptive Mergers," CIG Working Papers FS IV 01-26, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
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