Economics at your fingertips  

Price and Probability: Decomposing the Takeover Effects of Anti-Takeover Provisions

Cu�at, Vicente, Mireia Gine and Maria Guadalupe ()
Authors registered in the RePEc Author Service: Vicente Cuñat ()

No 12059, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the causal effects of anti-takeover provisions on takeovers. We decompose their effect on prices, takeover likelihood and target selection and explore the channels through which they change shareholders' value. We provide causal estimates based on shareholder proposals and deal with the endogenous selection of targets through bounding techniques. Voting to remove an anti-takeover provision increases the annual takeover probability by 0.9% and increases premiums by 2.8%. The premium effect is driven by more related acquisitions, better matching and higher synergies when targets are less protected. We do not find evidence of a trade-off between premiums and takeover probabilities.

Date: 2017-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

Related works:
Journal Article: Price and Probability: Decomposing the Takeover Effects of Anti‐Takeover Provisions (2020) Downloads
Working Paper: Price and probability: decomposing the takeover effects of anti-takeover provisions (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from ... rs/dp.php?dpno=12059

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

Page updated 2021-08-19
Handle: RePEc:cpr:ceprdp:12059