The effects of takeover threats of shareholders and firm value

Marco Haan and Yohanes Riyanto

No 00E02, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: Abstract We study the role of takeover threats as a corporate control mechanism using Aghion and Tirole's (1997) model of formal and real authority. Shareholders do not monitor the manager's actions, since ownership is widely dispersed. A corporate raider may monitor, and steps in if a prot opportunity exists. In our model, a takeover threat decreases the manager's effort and harms shareholders. The effect of a takeover threat on the expected value of the rm is ambiguous. It is in the interest of the corporate raider if severance payments the manager receives upon being red are high. Shareholders, however, prefer them to be low.

Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://irs.ub.rug.nl/ppn/24032868X (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://irs.ub.rug.nl/ppn/24032868X [302 Found]--> https://irs.ub.rug.nl/ppn/24032868X [302 Found]--> https://www.rug.nl/research/portal/publications/pub(caa31c88-8d8e-4d79-8c49-aeb5bd18eab5).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(caa31c88-8d8e-4d79-8c49-aeb5bd18eab5).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/the-effects-of-takeover-threats-of-shareholders-and-firm-value-2)

Related works:
Journal Article: The effects of takeover threats on shareholders and firm value (2006)
Working Paper: The effects of takeover threats of shareholders and firm value (1999)
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: https://EconPapers.repec.org/RePEc:gro:rugsom:00e02

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().