Essays on corporate takeovers
Additional contact information
Cara Vansteenkiste: Tilburg University, School of Economics and Management
Other publications TiSEM from Tilburg University, School of Economics and Management
This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As). The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance. The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts. The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak. The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tiu:tiutis:57ddfd7c-d14f-4ca0-b921-7bdcf01c2843
Access Statistics for this paper
More papers in Other publications TiSEM from Tilburg University, School of Economics and Management
Bibliographic data for series maintained by Richard Broekman ().