USF St. Petersburg campus Faculty Publications
An empirical analysis of cancelled mergers, board composition and ownership structure.
Document Type
Article
Publication Date
2002
ISSN
0960-3107
Abstract
This paper examines the effects of board composition and ownership structure in the valuation of target firms in cancelled mergers. These results find no significant association between board composition and shareholder wealth. On the contrary, when a merger is cancelled by the target firm, abnormal returns surrounding the announcement are negatively related to share ownership by inside directors. In addition, we find the likelihood that the target firm is subsequently taken over depends largely on two factors: stock ownership by inside directors and the presence of multiple bids. These results suggest a strong association between ownership structure and the valuation of target firms in cancelled mergers.
Language
en_US
Publisher
Routledge
Recommended Citation
Davidson, W.N., III, Rosenstein, S. & Sundaram, S. (2002). An empirical analysis of cancelled mergers, board composition and ownership structure. Applied Financial Economics, 12, 485-491. doi: 10.1080/09603100010005302
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Comments
Citation only. Full-text article is available through licensed access provided by the publisher. Members of the USF System may access the full-text of the article through the authenticated link provided.