The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value?
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/18146 |
Resumo: | Poison pills are controversial devices for which no common conclusion as to how the market reacts to their adoption exists. This research collates 4,479 poison pill adoption events by American companies over the period 1997-2015. Statistically significant insights and positive abnormal returns were found on the day the poison pill was adopted. It is for this reason that we argue in favour of the shareholder wealth-maximization hypothesis, stating that poison pills protect shareholders by providing management a superior bargaining position. Shareholders react positively to poison pill adoption, particularly if a hostile takeover attempt is anticipated. Furthermore, shareholders seem to value the protective effect of the device, which both provides management a superior bargaining position and allows the maximal possible bid premium to be negotiated. |
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The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value?Corporate governancePoison pillsShareholder wealthAntitakeover statuteHostile takeoverValue creationPoison pills are controversial devices for which no common conclusion as to how the market reacts to their adoption exists. This research collates 4,479 poison pill adoption events by American companies over the period 1997-2015. Statistically significant insights and positive abnormal returns were found on the day the poison pill was adopted. It is for this reason that we argue in favour of the shareholder wealth-maximization hypothesis, stating that poison pills protect shareholders by providing management a superior bargaining position. Shareholders react positively to poison pill adoption, particularly if a hostile takeover attempt is anticipated. Furthermore, shareholders seem to value the protective effect of the device, which both provides management a superior bargaining position and allows the maximal possible bid premium to be negotiated.Inderscience2020-04-28T00:00:00Z2019-01-01T00:00:00Z20192019-05-24T15:58:25Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/18146eng1756-004710.1504/IJBEX.2019.10020906Ferraz, D. P.Lopes, I. T.Hitzelberger, S.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:24:22Zoai:repositorio.iscte-iul.pt:10071/18146Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:11:05.871842Repositório 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 |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
title |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
spellingShingle |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? Ferraz, D. P. Corporate governance Poison pills Shareholder wealth Antitakeover statute Hostile takeover Value creation |
title_short |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
title_full |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
title_fullStr |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
title_full_unstemmed |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
title_sort |
The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value? |
author |
Ferraz, D. P. |
author_facet |
Ferraz, D. P. Lopes, I. T. Hitzelberger, S. |
author_role |
author |
author2 |
Lopes, I. T. Hitzelberger, S. |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Ferraz, D. P. Lopes, I. T. Hitzelberger, S. |
dc.subject.por.fl_str_mv |
Corporate governance Poison pills Shareholder wealth Antitakeover statute Hostile takeover Value creation |
topic |
Corporate governance Poison pills Shareholder wealth Antitakeover statute Hostile takeover Value creation |
description |
Poison pills are controversial devices for which no common conclusion as to how the market reacts to their adoption exists. This research collates 4,479 poison pill adoption events by American companies over the period 1997-2015. Statistically significant insights and positive abnormal returns were found on the day the poison pill was adopted. It is for this reason that we argue in favour of the shareholder wealth-maximization hypothesis, stating that poison pills protect shareholders by providing management a superior bargaining position. Shareholders react positively to poison pill adoption, particularly if a hostile takeover attempt is anticipated. Furthermore, shareholders seem to value the protective effect of the device, which both provides management a superior bargaining position and allows the maximal possible bid premium to be negotiated. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-01-01T00:00:00Z 2019 2019-05-24T15:58:25Z 2020-04-28T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/18146 |
url |
http://hdl.handle.net/10071/18146 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1756-0047 10.1504/IJBEX.2019.10020906 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Inderscience |
publisher.none.fl_str_mv |
Inderscience |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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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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