Title

An empirical analysis of cancelled mergers, board composition and ownership structure.

SelectedWorks Author Profiles:

Sridhar Sundaram

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.

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.

Language

en_US

Publisher

Routledge

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.