Investors’ activism and the gains from takeover deals

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Investors’ activism and the gains from takeover deals. / Guo, Jie; Paudyal, Krishna; Utham, Vinay ; Xing, Xiaofei.

In: European Journal of Finance, Vol. 26, No. 1, 2020, p. 64-83.

Research output: Contribution to journalArticlepeer-review

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Guo, Jie ; Paudyal, Krishna ; Utham, Vinay ; Xing, Xiaofei. / Investors’ activism and the gains from takeover deals. In: European Journal of Finance. 2020 ; Vol. 26, No. 1. pp. 64-83.

Bibtex

@article{f7cb890bbee24202af8e62551adb8890,
title = "Investors{\textquoteright} activism and the gains from takeover deals",
abstract = "We examine whether activists add value to the shareholders of targets and their acquirers. Several findings emerge. First, acquirers of targets that have activists outperform acquirers of other targets in both the short and long term. Second, the premium received by the shareholders of targets is not affected by activism. Third, superior gains achieved by the acquirers of targets with activists are driven by non-cash deals, while the average target benefits more from cash deals.",
keywords = "Hedge Funds, Investor Activism, Mergers & Acquisitions, Event Studies",
author = "Jie Guo and Krishna Paudyal and Vinay Utham and Xiaofei Xing",
year = "2020",
doi = "10.1080/1351847X.2019.1680407",
language = "English",
volume = "26",
pages = "64--83",
journal = "European Journal of Finance",
issn = "1351-847X",
publisher = "Taylor & Francis",
number = "1",

}

RIS

TY - JOUR

T1 - Investors’ activism and the gains from takeover deals

AU - Guo, Jie

AU - Paudyal, Krishna

AU - Utham, Vinay

AU - Xing, Xiaofei

PY - 2020

Y1 - 2020

N2 - We examine whether activists add value to the shareholders of targets and their acquirers. Several findings emerge. First, acquirers of targets that have activists outperform acquirers of other targets in both the short and long term. Second, the premium received by the shareholders of targets is not affected by activism. Third, superior gains achieved by the acquirers of targets with activists are driven by non-cash deals, while the average target benefits more from cash deals.

AB - We examine whether activists add value to the shareholders of targets and their acquirers. Several findings emerge. First, acquirers of targets that have activists outperform acquirers of other targets in both the short and long term. Second, the premium received by the shareholders of targets is not affected by activism. Third, superior gains achieved by the acquirers of targets with activists are driven by non-cash deals, while the average target benefits more from cash deals.

KW - Hedge Funds

KW - Investor Activism

KW - Mergers & Acquisitions

KW - Event Studies

U2 - 10.1080/1351847X.2019.1680407

DO - 10.1080/1351847X.2019.1680407

M3 - Article

VL - 26

SP - 64

EP - 83

JO - European Journal of Finance

JF - European Journal of Finance

SN - 1351-847X

IS - 1

ER -