Author: Walter Novaes
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
How do shareholders perceive managers who lever up under a takeover threat? Increasing leverage conveys good news if it reflects management's ability to enhance value. It conveys bad news, though, if inefficient managers are more pressured to lever up than the efficient ones. This paper demonstrates that negative updating may prevail. Managers who lever up to end a takeover threat may thus commit to enhance value and yet increase their chances of being replaced by their shareholders. The model provides implications for the dispersion of intraindustry leverage and for the stock price reaction to debt-for-equity exchanges.
Managerial Turnover and Leverage Under a Takeover Threat
Author: Walter Novaes
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
How do shareholders perceive managers who lever up under a takeover threat? Increasing leverage conveys good news if it reflects management's ability to enhance value. It conveys bad news, though, if inefficient managers are more pressured to lever up than the efficient ones. This paper demonstrates that negative updating may prevail. Managers who lever up to end a takeover threat may thus commit to enhance value and yet increase their chances of being replaced by their shareholders. The model provides implications for the dispersion of intraindustry leverage and for the stock price reaction to debt-for-equity exchanges.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
How do shareholders perceive managers who lever up under a takeover threat? Increasing leverage conveys good news if it reflects management's ability to enhance value. It conveys bad news, though, if inefficient managers are more pressured to lever up than the efficient ones. This paper demonstrates that negative updating may prevail. Managers who lever up to end a takeover threat may thus commit to enhance value and yet increase their chances of being replaced by their shareholders. The model provides implications for the dispersion of intraindustry leverage and for the stock price reaction to debt-for-equity exchanges.
Managerial Turnover and Leverage Under a Takeover Threat
Author: Wakter Novaes
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 36
Book Description
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 36
Book Description
Corporate Takeover Targets
Author: Hicham Meghouar
Publisher: John Wiley & Sons
ISBN: 1848219172
Category : Business & Economics
Languages : en
Pages : 240
Book Description
The term "takeover", of which the first form is mergers and acquisitions (M&A), refers to the transfer of control of a business from one group of shareholders to another. Considering the importance of this issue and the real drives behind takeovers, it has become imperative to identifying companies that are vulnerable to takeover by two types: tender offer and exchange offer. This book thus presents the legal aspects, the theoretical justifications and the empirical contributions of takeovers, and analyzes the economic and financial characteristics of targets in order to assess the probability of being acquired. An empirical approach based on two quantitative studies is then applied to the European market, which is still virgin territory in terms of academic research. Finally, acquisition probability models have been developed and they have a 72% forecast accuracy average rate of targets. Corporate Takeover Targets is aimed at students and researchers in economic and management, as well as M&A consultants.
Publisher: John Wiley & Sons
ISBN: 1848219172
Category : Business & Economics
Languages : en
Pages : 240
Book Description
The term "takeover", of which the first form is mergers and acquisitions (M&A), refers to the transfer of control of a business from one group of shareholders to another. Considering the importance of this issue and the real drives behind takeovers, it has become imperative to identifying companies that are vulnerable to takeover by two types: tender offer and exchange offer. This book thus presents the legal aspects, the theoretical justifications and the empirical contributions of takeovers, and analyzes the economic and financial characteristics of targets in order to assess the probability of being acquired. An empirical approach based on two quantitative studies is then applied to the European market, which is still virgin territory in terms of academic research. Finally, acquisition probability models have been developed and they have a 72% forecast accuracy average rate of targets. Corporate Takeover Targets is aimed at students and researchers in economic and management, as well as M&A consultants.
IT Governance in a Networked World: Multi-Sourcing Strategies and Social Capital for Corporate Computing
Author: Lock Lee, Laurence
Publisher: IGI Global
ISBN: 160566085X
Category : Medical
Languages : en
Pages : 378
Book Description
"This book takes a critical look at IT Governance challenges in a world that is becoming increasingly networked. IT firms are becoming increasingly reliant on alliances and partnerships to generate new value"--Provided by publisher.
Publisher: IGI Global
ISBN: 160566085X
Category : Medical
Languages : en
Pages : 378
Book Description
"This book takes a critical look at IT Governance challenges in a world that is becoming increasingly networked. IT firms are becoming increasingly reliant on alliances and partnerships to generate new value"--Provided by publisher.
Journal of CORPORATE FINANCE: Contracting, Governance and Organization
Leveraged Management Buyouts
Author: Yakov Amihud
Publisher: Beard Books
ISBN: 9781587981388
Category : Business & Economics
Languages : en
Pages : 292
Book Description
Papers presented at a conference held at the Leonard N. Stern School of Business, New York University, on May 20, 1988, and sponsored by the Salomon Brothers Center for the Study of Financial Institutions. The 1989 edition of this proceedings volume was published by Dow-Jones-Irwin. Academics, legis
Publisher: Beard Books
ISBN: 9781587981388
Category : Business & Economics
Languages : en
Pages : 292
Book Description
Papers presented at a conference held at the Leonard N. Stern School of Business, New York University, on May 20, 1988, and sponsored by the Salomon Brothers Center for the Study of Financial Institutions. The 1989 edition of this proceedings volume was published by Dow-Jones-Irwin. Academics, legis
Takeover Defenses, Managerial Ownership, and Firm Leverage
Author: Senay Agca
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
Book Description
We examine the impact of the agency conflicts of debt on firm financing decision. Consistent with the hypothesis that firm financing policy is determined by the tradeoff between the market for corporate control (takeover defenses) and managerial opportunism, we find that managerial equity ownership and its interaction with takeover defenses affect firm financing decisions. Specifically, we find that (i) firms with large takeover defenses carry high levels of debt, (ii) firms with large managerial ownership operate at high levels of debt unless the firm has a large number of takeover defenses, in which case these managers reduce debt levels, and (iii) the relation between leverage and takeover defenses becomes insignificant when we control for the interaction between these defenses and managerial ownership. Further testing reveals that while bond covenants have a role in reducing the agency conflicts related to the cost of debt financing, they have an insignificant role related to firm leverage. Overall, the evidence suggests that a two-dimensional aspect of governance that includes the interaction between managerial ownership and takeover defenses is imperative in understanding the impact of the agency costs on firm financing decisions.
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
Book Description
We examine the impact of the agency conflicts of debt on firm financing decision. Consistent with the hypothesis that firm financing policy is determined by the tradeoff between the market for corporate control (takeover defenses) and managerial opportunism, we find that managerial equity ownership and its interaction with takeover defenses affect firm financing decisions. Specifically, we find that (i) firms with large takeover defenses carry high levels of debt, (ii) firms with large managerial ownership operate at high levels of debt unless the firm has a large number of takeover defenses, in which case these managers reduce debt levels, and (iii) the relation between leverage and takeover defenses becomes insignificant when we control for the interaction between these defenses and managerial ownership. Further testing reveals that while bond covenants have a role in reducing the agency conflicts related to the cost of debt financing, they have an insignificant role related to firm leverage. Overall, the evidence suggests that a two-dimensional aspect of governance that includes the interaction between managerial ownership and takeover defenses is imperative in understanding the impact of the agency costs on firm financing decisions.
A Management Guide to Leveraged Buyouts
Author: Edward K. Crawford
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 282
Book Description
An executive vice president at Wheat, First Securities, author Crawford shows how companies are selling out to management and investors in a transaction financed largely with debt. Here is a brief history and explanation of LBOs, discussing their risks and rewards, and providing the anatomy of a deal for an audience interested in the financial details. Describes and analyzes a number of actual leveraged buyouts.
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 282
Book Description
An executive vice president at Wheat, First Securities, author Crawford shows how companies are selling out to management and investors in a transaction financed largely with debt. Here is a brief history and explanation of LBOs, discussing their risks and rewards, and providing the anatomy of a deal for an audience interested in the financial details. Describes and analyzes a number of actual leveraged buyouts.
Knights, Raiders, and Targets
Author: John C. Coffee Jr.
Publisher: Oxford University Press
ISBN: 0198021313
Category : Business & Economics
Languages : en
Pages : 560
Book Description
Fascinating as the corporate takeovers of recent years have been--with their "golden parachutes" and junk bonds, "greenmailers" and white knights--it is far from clear what underlying forces are at work, and what their long-term consequences will be. Debate over these questions has become polarized: some see takeover threats as disciplinary mechanisms that induce managers to behave efficiently and move assets to higher valued uses or into the hands of more efficient managers; others claim that corporate raiders have produced few observable increases in operating efficiency, but rather have disrupted business planning, enforced a preoccupation with the short-term, and tilted the balance sheets of corporate America towards dangerously high debt levels. Such sharp conflicts in theory and evidence have produced considerable governmental confusion concerning the appropriate policy response. Scores of bills have been introduced in Congress, but legislators are no more in agreement than scholars. Knights, Raiders, and Targets represents one of the first sustained efforts to refine and clarify these issues. Based on papers presented at a symposium sponsored by the Columbia Law School's Center for Law and Economic Studies, it also includes discussion of the informal presentations made at the symposium by the CEOs of several major corporations. This important book airs new theories and offers vital and exciting discussion of the essential issues attached to an event that has become central to American corporate culture.
Publisher: Oxford University Press
ISBN: 0198021313
Category : Business & Economics
Languages : en
Pages : 560
Book Description
Fascinating as the corporate takeovers of recent years have been--with their "golden parachutes" and junk bonds, "greenmailers" and white knights--it is far from clear what underlying forces are at work, and what their long-term consequences will be. Debate over these questions has become polarized: some see takeover threats as disciplinary mechanisms that induce managers to behave efficiently and move assets to higher valued uses or into the hands of more efficient managers; others claim that corporate raiders have produced few observable increases in operating efficiency, but rather have disrupted business planning, enforced a preoccupation with the short-term, and tilted the balance sheets of corporate America towards dangerously high debt levels. Such sharp conflicts in theory and evidence have produced considerable governmental confusion concerning the appropriate policy response. Scores of bills have been introduced in Congress, but legislators are no more in agreement than scholars. Knights, Raiders, and Targets represents one of the first sustained efforts to refine and clarify these issues. Based on papers presented at a symposium sponsored by the Columbia Law School's Center for Law and Economic Studies, it also includes discussion of the informal presentations made at the symposium by the CEOs of several major corporations. This important book airs new theories and offers vital and exciting discussion of the essential issues attached to an event that has become central to American corporate culture.
Complementarities in Corporate Governance
Author: Ralph P. Heinrich
Publisher: Springer Science & Business Media
ISBN: 9783540432265
Category : Business & Economics
Languages : en
Pages : 262
Book Description
Corporate governance reform is currently on the agenda in the European Union, the United States, Japan and in emerging market economies. This book takes a fresh look at the reform debate by focusing on the trade-offs involved in reconciling the diverging interests of shareholders, creditors and managers. It shows how effective corporate governance systems exploit complementarities between the incentives generated by the capital structure, the ownership structure, investor monitoring, takeover threats, and management compensation to minimize the sum of all agency costs facing the public corporation. The book combines a general theoretical treatment with a detailed study of the institutions of corporate governance in Germany, Japan and the United States and a critical assessment of recent reforms.
Publisher: Springer Science & Business Media
ISBN: 9783540432265
Category : Business & Economics
Languages : en
Pages : 262
Book Description
Corporate governance reform is currently on the agenda in the European Union, the United States, Japan and in emerging market economies. This book takes a fresh look at the reform debate by focusing on the trade-offs involved in reconciling the diverging interests of shareholders, creditors and managers. It shows how effective corporate governance systems exploit complementarities between the incentives generated by the capital structure, the ownership structure, investor monitoring, takeover threats, and management compensation to minimize the sum of all agency costs facing the public corporation. The book combines a general theoretical treatment with a detailed study of the institutions of corporate governance in Germany, Japan and the United States and a critical assessment of recent reforms.