Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7364672 | Journal of International Financial Markets, Institutions and Money | 2015 | 30 Pages |
Abstract
In this paper, we examine a sample of 3119 minority block acquisitions around the world. One in seven firms are targeted by active investors who either have their own representatives on the board or in the extreme case, replace existing CEOs. We find that active investors are more prevalent in countries with good investor protection. Further, firms targeted by active investors experience significantly higher announcement returns and a significantly higher increase in profitability, sales, and investment expenditures subsequent to the block acquisition, especially in countries with good investor protection.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hugh Kim, Rose C. Liao, Yan Wang,