Security Voting Structure and Bidder Screening - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Journal Articles Journal of Financial Intermediation Year : 2011

Security Voting Structure and Bidder Screening

Abstract

This paper demonstrates that non-voting shares can promote take- overs. When the bidder has private information, shareholders may refuse to tender because they suspect to sell at an ex post unfa- vourable price. The ensuing friction in the sale of cash flow rights can prevent an efficient change of control. Separating cash flow and voting rights alters the degree of cross-subsidization among bidder types. It can therefore be used as an instrument to promote takeover activity and to discriminate between efficient and ineffi- cient bidders. The optimal fraction of non-voting shares decreases with managerial ability, implying an inverse relationship between firm value and non-voting shares.
Fichier principal
Vignette du fichier
at_burkart_lee_JFI_2011.pdf (244.62 Ko) Télécharger le fichier
Origin : Files produced by the author(s)

Dates and versions

halshs-01308325 , version 1 (30-08-2022)

Identifiers

Cite

Christian At, Mike Burkart, Samuel Lee. Security Voting Structure and Bidder Screening. Journal of Financial Intermediation, 2011, 20, pp.458-476. ⟨10.1016/j.jfi.2010.10.001⟩. ⟨halshs-01308325⟩

Collections

UNIV-FCOMTE CRESE
52 View
6 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More