Ownership Structure and Operating Performance of Acquiring Firms: The Case of English-Origin Countries

Détails

ID Serval
serval:BIB_E785297F021D
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Ownership Structure and Operating Performance of Acquiring Firms: The Case of English-Origin Countries
Périodique
Journal of Economics and Business
Auteur⸱e⸱s
Yen T.-Y., André P.
ISSN
0148-6195
Statut éditorial
Publié
Date de publication
09/2007
Peer-reviewed
Oui
Volume
59
Numéro
5
Pages
380-405
Langue
anglais
Résumé
This paper provides empirical evidence on the relation between concentrated ownership and the long term operating performance of acquiring firms. We investigate the performance around 287 takeovers in English-origin countries other than the US by following the classification of La Porta et al. [La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. The Journal of Political Economy,106(6), 1113-1155]. Our principal finding is that the relationship between concentrated ownership and the level and change in operating cash flow returns after takeovers is non-linear. Value creating deals are associated with higher levels of concentration consistent with decreasing agency costs as the dominant shareholder's wealth invested in the acquiring firm increases. We also find, although all acquiring firms are from English-origin countries, that greater investor protection, as measured by the updated anti-director rights index in Djankov et al. [Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2006). The law and economics of self-dealing. Working Paper], has a positive impact on operating performance from acquisitions. We do not find a link between performance and their new anti-self-dealing index.
Mots-clé
Mergers and acquisitions, Concentrated ownership, Operating performance, English-origin countries, Anti-self-dealing index, Anti-director rights index
Création de la notice
29/04/2016 16:13
Dernière modification de la notice
20/08/2019 16:10
Données d'usage