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Author: Mike Burkart
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 32
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Book Description
Abstract: We study the role of legal investor protection for the efficiency of the market for corporate control. Stronger legal investor protection limits the ease with which an acquirer, once in control, can extract private benefits at the expense of non-controlling investors. This, in turn, increases the acquirer's capacity to raise outside funds to finance the takeover. Absent effective competition for the target, the increased outside funding capacity does not make efficient takeovers more likely, however, because the bid price, and thus the acquirer's need for funds, increase in lockstep with his pledgeable income. In contrast, under effective competition, the increased outside funding capacity makes it less likely that the takeover outcome is determined by the bidders' financing constraintsâ??and thus by their internal fundsâ??and more likely that it is determined by their ability to create value. Accordingly, stronger legal investor protection can improve the efficiency of the takeover outcome. Taking into account the interaction between legal investor protection and financing constraints also provides new insights into the optimal allocation of voting rights, sales of controlling blocks, and the role of legal investor protection in cross-border M & A.
Author: Mike Burkart
Publisher:
ISBN:
Category : Consolidation and merger of corporations
Languages : en
Pages : 32
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Book Description
Abstract: We study the role of legal investor protection for the efficiency of the market for corporate control. Stronger legal investor protection limits the ease with which an acquirer, once in control, can extract private benefits at the expense of non-controlling investors. This, in turn, increases the acquirer's capacity to raise outside funds to finance the takeover. Absent effective competition for the target, the increased outside funding capacity does not make efficient takeovers more likely, however, because the bid price, and thus the acquirer's need for funds, increase in lockstep with his pledgeable income. In contrast, under effective competition, the increased outside funding capacity makes it less likely that the takeover outcome is determined by the bidders' financing constraintsâ??and thus by their internal fundsâ??and more likely that it is determined by their ability to create value. Accordingly, stronger legal investor protection can improve the efficiency of the takeover outcome. Taking into account the interaction between legal investor protection and financing constraints also provides new insights into the optimal allocation of voting rights, sales of controlling blocks, and the role of legal investor protection in cross-border M & A.
Author: Jonathan Fisher
Publisher: Sweet & Maxwell
ISBN: 9780421673007
Category : Financial services industy
Languages : en
Pages : 734
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Book Description
This series enables practitioners to stay up to date with litigation and developments in the field of entertainment law. Emphasis is placed on the practical implications of relevant legislative developments and the effects of technology on artists, rights owners and collecting societies
Author: Jerry Cao
Publisher:
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders' wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.
Author: Tatiana Nenova
Publisher: World Bank Publications
ISBN:
Category : Acquisition
Languages : en
Pages : 52
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Book Description
The issue of "an appropriate" legal framework, especially in the case of the takeover market, has been poorly studied in the case of emerging markets, yet it is of immediate relevance and practical policymaker interest. The study makes a first attempt to analyze takeover regulations in a comparative context across 50 countries. It proposes a methodology to create a detailed index on the most salient features of capital market laws, and illustrates the approach on the case of takeover legislation. The methodology allows better understanding of the impact of laws on markets and development, allows a detailed quantification of a given regulation, in this case takeover market rules, and helps determine relevant policy implications. Specifically, the framework permits the exploration of the effects of individual regulations, their substitutability and interplay, as well as the overall extent of friendliness of the laws to investors, or particular groups thereof (such as minority shareholders), and the links of specialized regulation with the overall legal system. Finally, the study explores the effect of the investor-friendliness of takeover laws on stock market development.
Author: United States. Congress. House. Committee on Interstate and Foreign Commerce. Subcommittee on Commerce and Finance
Publisher:
ISBN:
Category : Acquisitions and merger of corporations
Languages : en
Pages : 74
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Book Description
Author: United States. Congress. House. Interstate and Foreign Commerce
Publisher:
ISBN:
Category :
Languages : en
Pages : 78
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Book Description
Author: Cristiano Rizzi
Publisher: Kluwer Law International B.V.
ISBN: 9041142134
Category : Law
Languages : en
Pages : 288
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Book Description
This hugely informative book - unique in its overarching emphasis on the laws governing M&As and takeovers in China - not only shows those interested in investing in China how to avoid legal mistakes and miscalculations. In addition to offering singular interpretive analysis of strictly legal matters, the authors concentrate extensively on the all-important cultural and environmental factors that can make business in China daunting for the uninitiated. Extending this double emphasis on cultural understanding and M&A and takeover expertise, the authors clearly explain such elements of how to enter the Chinese market (or expand a presence in it) as the following: concepts of guanxi and mienzi; understanding China’s rising middle class; valuation of state-owned assets; maximum permitted debt-to-equity ratios; key PRC government agencies involved in the approval of transactions; taxation framework for enterprise restructuring in China; employees as an asset; share swaps; prohibited trading activities when acquiring a listed company; legal framework for dispute resolution; administrative proceedings; liabilities for breach of contract; and responding to intellectual property rights abuse. The authors provide precise details on the characteristics of, and procedures involved in, the wide range of investment options available in China, with knowledgeable guidance on the choice of investment options and protection of investor interests. Because China is clearly a major global economic force and will continue to be so in the foreseeable future, this thorough but down-to earth guide is of immeasurable practical value to foreign investors of every kind, from multinational corporations to individual venture capitalists.
Author: Brown, Ferrara, Bird, Kubek, Regner
Publisher: Wolters Kluwer
ISBN: 1543813224
Category : Consolidation and merger of corporations
Languages : en
Pages : 866
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Book Description
Takeovers: A Strategic Guide to Mergers and Acquisitions
Author: Jonathan Fisher
Publisher:
ISBN: 9780421546301
Category : Financial services industry
Languages : en
Pages : 567
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Book Description
Coverage of the law which protects investors and regulates those involved in the investment industry. A review of each system for the regulation of the investment markets, examines the obligations of company directors, shareholders, trustees, deposit takers and professional advisors, and sets out procedures leading to civil and criminal actions.
Author: Woojin Kim
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
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Book Description
This paper examines the influence of investor protection on the form of Mamp;A transaction and its subsequent impact on ownership dilution and creation of corporate pyramids. In a large sample of acquisitions around the world, I find that (stock-based) mergers are more likely in countries with good investor protection, while (cash-based) control transactions are more prevalent in countries with low investor protection. Repeated acquisitions in common law countries results in substantial dilution of proportional ownership especially in U.S. but not in civil law countries. In contrast, series of acquisitions in civil law countries linked through firms that are bidders in one acquisition but targets in another tend to generate a corresponding series of inter-corporate control links, while this correspondence is much weaker in common law countries. These results suggest that differences in acquisition modes could be one potential channel through which investor protection affects corporate control structures around the world.
