This paper examines, using a global M&A dataset, the relationship between the target firm’s minority shareholders’ returns and a country’s stock market development in deals in which large shareholders increase their ownership stakes. For the purpose of this study, we use two measures of stock market development: (1) turnover over GDP, and (2) turnover over market capitalization. We provide evidence supporting the view that minority shareholders in target firms gain significantly more in countries with high stock market development than their counterparts in less-developed markets. Our results are robust to several firm and deal characteristics and provide evidence to policy makers that the degree of stock market development is a key determinant to improve minority shareholders’ welfare

Croci, E., Petmezas, D. (2009). Minority Shareholders’ Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As [Working paper].

Minority Shareholders’ Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As

Croci, E;
2009

Abstract

This paper examines, using a global M&A dataset, the relationship between the target firm’s minority shareholders’ returns and a country’s stock market development in deals in which large shareholders increase their ownership stakes. For the purpose of this study, we use two measures of stock market development: (1) turnover over GDP, and (2) turnover over market capitalization. We provide evidence supporting the view that minority shareholders in target firms gain significantly more in countries with high stock market development than their counterparts in less-developed markets. Our results are robust to several firm and deal characteristics and provide evidence to policy makers that the degree of stock market development is a key determinant to improve minority shareholders’ welfare
Working paper
No
Scientifica
minority shareholders, stock market development, increase-in-ownership mergers and acquisitions, target returns
English
Croci, E., Petmezas, D. (2009). Minority Shareholders’ Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As [Working paper].
Croci, E; Petmezas, D
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10281/6486
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