What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10362/26192 |
Resumo: | Poison pills are controversial devices. There is no common conclusion how the market reacts to their adoption. This empirical study finds statistically significant, positive abnormal returns centred on the day of the adoption of the pill. Consequently, this paper argues in favour of the shareholder wealth maximization hypothesis, stating that poison pills protect shareholders by giving the management a superior bargaining position. Further sub-sample analysis shows that poison pill adoption with an unwelcomed takeover threat drive the positive results in the sample. Routine poison pills do not show clear positive abnormal returns at the date of the pill adoption. This conclusion coincides with similar results found by Schepker, Oh and Patel (2016). Keywords: poison pills, shareholder wealth maximization hypothesis, market |
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What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pillsPoison pillsShareholder wealth maximization hypothesisMarket reactionDomínio/Área Científica::Ciências Sociais::Economia e GestãoPoison pills are controversial devices. There is no common conclusion how the market reacts to their adoption. This empirical study finds statistically significant, positive abnormal returns centred on the day of the adoption of the pill. Consequently, this paper argues in favour of the shareholder wealth maximization hypothesis, stating that poison pills protect shareholders by giving the management a superior bargaining position. Further sub-sample analysis shows that poison pill adoption with an unwelcomed takeover threat drive the positive results in the sample. Routine poison pills do not show clear positive abnormal returns at the date of the pill adoption. This conclusion coincides with similar results found by Schepker, Oh and Patel (2016). Keywords: poison pills, shareholder wealth maximization hypothesis, marketFerraz, Duarte PittaRUNHitzelberger, Simon2018-01-20T01:30:27Z2017-01-202017-01-20T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfapplication/pdfhttp://hdl.handle.net/10362/26192TID:201716976enginfo:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:13:46Zoai:run.unl.pt:10362/26192Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:28:26.998522Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
title |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
spellingShingle |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills Hitzelberger, Simon Poison pills Shareholder wealth maximization hypothesis Market reaction Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
title_full |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
title_fullStr |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
title_full_unstemmed |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
title_sort |
What effect do poison pills have on shareholder value? an empirical research on the adoption of poison pills |
author |
Hitzelberger, Simon |
author_facet |
Hitzelberger, Simon |
author_role |
author |
dc.contributor.none.fl_str_mv |
Ferraz, Duarte Pitta RUN |
dc.contributor.author.fl_str_mv |
Hitzelberger, Simon |
dc.subject.por.fl_str_mv |
Poison pills Shareholder wealth maximization hypothesis Market reaction Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Poison pills Shareholder wealth maximization hypothesis Market reaction Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Poison pills are controversial devices. There is no common conclusion how the market reacts to their adoption. This empirical study finds statistically significant, positive abnormal returns centred on the day of the adoption of the pill. Consequently, this paper argues in favour of the shareholder wealth maximization hypothesis, stating that poison pills protect shareholders by giving the management a superior bargaining position. Further sub-sample analysis shows that poison pill adoption with an unwelcomed takeover threat drive the positive results in the sample. Routine poison pills do not show clear positive abnormal returns at the date of the pill adoption. This conclusion coincides with similar results found by Schepker, Oh and Patel (2016). Keywords: poison pills, shareholder wealth maximization hypothesis, market |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-01-20 2017-01-20T00:00:00Z 2018-01-20T01:30:27Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10362/26192 TID:201716976 |
url |
http://hdl.handle.net/10362/26192 |
identifier_str_mv |
TID:201716976 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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embargoedAccess |
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application/pdf application/pdf |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799137910357753856 |