Optimal toeholds in takeover contests

Journal of Financial Economics

Volumn 77, Issue 2, 2005, Pages 321-346

  Goldman, Eitan ^a   Qian, Jun ^b  

^a UNIVERSITY OF NORTH CAROLINA   (United States)

^b BOSTON COLLEGE   (United States)

Author keywords

Entrenchment; Free Rider problem; Takeover; Tender offer; Toehold

Indexed keywords

EID: 22144451436     PISSN: 0304405X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jfineco.2004.06.009     Document Type: Article

References (47)

1. A. Agrawal R. Walkling Executive careers and compensation surrounding takeover bids Journal of Finance 49 1994 985-1014
2. T. Bates M. Lemmon Breaking up is hard to do? An analysis of termination fee provisions and merger outcomes Journal of Financial Economics 69 3 2003 469-504
3. E. Berkovitch N. Khanna A theory of acquisition markets: Mergers vs. tender offers, and golden parachutes Review of Financial Studies 4 1 1991 149-174
4. S. Betton B.E. Eckbo Toeholds, bid jumps, and expected payoffs in takeovers Review of Financial Studies 13 4 2000 841-882
5. M. Bradley A. Desai E.H. Kim Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms Journal of Financial Economics 21 1988 3-40
6. Bris, A., 2001. When do bidders purchase a toehold? Unpublished working paper, Yale University.
7. J. Bulow M. Huang P. Klemperer Toeholds and takeovers Journal of Political Economy 107 3 1999 427-454
8. T. Burch Locking out rival bidders: The use of lockup option in corporate mergers Journal of Financial Economics 60 2001 103-142
9. M. Burkart Initial shareholdings and overbidding in takeover contests Journal of Finance 50 1995 1491-1515
10. D. Choi Toehold acquisitions, shareholder wealth, and the market for corporate control Journal of Financial and Quantitative Analysis 26 3 1991 391-407
11. B. Chowdhry N. Jegadeesh Pre-tender offer share acquisition strategy in takeovers Journal of Financial and Quantitative Analysis 29 1994 117-129
12. R. Comment G.A. Jarrell Two-tier and negotiated tender offers: The imprisonment of free-riding shareholder Journal of Financial Economics 19 1987 283-310
13. R. Comment G.W. Schwert Poison or placebo? Evidence on the deterrence and wealth effects of modern antitakeover measures Journal of Financial Economics 39 1995 3-43
14. D. Denis D. Denis Performance changes following top management dismissals Journal of Finance 50 4 1995 1029-1057
15. D. Denis J. Serrano Active investors and management turnover following unsuccessful control contests Journal of Financial Economics 40 1996 239-266
16. M. Dewatripont The 'leading shareholder' strategy, takeover contests, and stock price dynamics European Economic Review 37 1993 983-1004
17. M. Fishman A theory of preemptive takeover bidding Rand Journal of Economics 19 1 1988 88-101
18. R. Giammarino R.L. Heinkel A model of dynamic takeover behavior Journal of Finance 41 2 1986 465-480
19. S.J. Grossman O.D. Hart Takeover bids, the free-rider problem and the theory of the corporation Bell Journal of Economics 11 1980 42-64
20. B. Hermalin M. Weisbach Endogenously chosen boards of directors and their monitoring of the CEO American Economic Review 88 1998 96-118
21. D. Hirshleifer Mergers and acquisitions: Strategic and informational issues In: R. Jarrow et al. (Eds.) Handbooks in Operations Research and Management Science, vol. 9, Finance 1995 Finance. Elsevier Science B.V. Amsterdam
22. D. Hirshleifer I.P.L. Png Facilitation of competing bids and the price of a takeover target Review of Financial Studies 2 4 1989 587-606
23. D. Hirshleifer S. Titman Share tendering strategies and the success of hostile takeover bids Journal of Political Economy 98 2 1990 295-324
24. G. Jarrell A. Poulsen Shark repellents and stock prices: The effects of antitakeover amendments since 1980 Journal of Financial Economics 19 1987 127-168
25. R.H. Jennings M.A. Mazzeo Competing bids, target management resistance, and the structure of takeover bids Review of Financial Studies 6 4 1993 883-909
26. M.C. Jensen J.S. Warner The distribution of power among corporate managers, shareholders, and directors Journal of Financial Economics 20 1988 3-24
27. S.C. Linn J. McConnell An empirical investigation of the impact of "antitakeover" amendments on common stock prices Journal of Financial Economics 11 1983 361-399
28. P. Malatesta R. Walkling Poison pill securities: Stockholder wealth, profitability, and ownership structure Journal of Financial Economics 20 1988 347-376
29. K. Martin J. McConnell Corporate performance, corporate takeovers and management turnover Journal of Finance 46 1991 671-688
30. W. Mikkelson M. Partch Managers' voting rights and corporate control Journal of Financial Economics 25 1989 263-290
31. W. Mikkelson R. Ruback An empirical analysis of the interfirm investment process Journal of Financial Economics 14 1985 523-553
32. R. Morck A. Shleifer R.W. Vishny Management ownership and market valuation: An empirical analysis Journal of Financial Economics 20 1988 293-316
33. M. Officer Termination fees in mergers and acquisitions Journal of Financial Economics 69 3 2003 431-467
34. J. Pound The effects of antitakeover amendments on takeover activity: some direct evidence Journal of Law and Economics 30 1987 353-367
35. S.A. Ravid M. Spiegel Toehold strategies, takeover laws and rival bidders Journal of Banking and Finance 23 8 1999 1219-1242
36. R. Ruback Do target shareholders lose in unsuccessful control contests? In: A. Auerbach (Ed.) Corporate Takeovers: Causes and Consequences 1988 University of Chicago Press Chicago 137-155
37. M. Ryngaert The effect of poison pill securities on shareholder wealth Journal of Financial Economics 20 1988 377-417
38. A. Safieddine S. Titman Leverage and corporate performance: Evidence from unsuccessful takeovers Journal of Finance 54 2 1999 547-580
39. G.W. Schwert Markup pricing in mergers and acquisitions Journal of Financial Economics 44 1996 153-192
40. P. Sercu C. Van Hulle On the structure of takeover models and insider-outsider conflicts in negotiated takeovers Journal of Banking and Finance 19 1995 11-44
41. H. Servaes J. McConnell Additional evidence on equity ownership and corporate value Journal of Financial Economics 27 1 1990 595-612
42. A. Shleifer R.W. Vishny Large shareholders and corporate control Journal of Political Economy 94 1986 481-499
43. A. Shleifer R.W. Vishny A survey of corporate governance Journal of Finance 52 2 1997 737-783
44. R. Singh Takeover bidding with toeholds: The case of the owner's curse Review of Financial Studies 11 4 1998 679-704
45. R.M. Stulz Managerial control of voting rights: Financing policies and the market for corporate control Journal of Financial Economics 20 1988 25-54
46. R.M. Stulz R.A. Walkling M.H. Song The distribution of target ownership and the division of gains in successful takeovers Journal of Finance 45 1990 817-833
47. R. Walkling Predicting tender offer success: A logistic analysis Journal of Financial and Quantitative Analysis 20 1985 461-478