The impact of investor protection law on takeovers: The case of leveraged buyouts

This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find e...

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Main Authors: CAO, Jerry, CUMMING, Douglas J., GOH, Jeremy, QIAN, Meijun, WANG, Xiaoming
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2008
Subjects:
M&A
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5224
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6223/viewcontent/SSRN_id1100059.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.lkcsb_research-62232018-11-07T05:39:08Z The impact of investor protection law on takeovers: The case of leveraged buyouts CAO, Jerry CUMMING, Douglas J. GOH, Jeremy QIAN, Meijun WANG, Xiaoming This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions. 2008-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/5224 info:doi/10.2139/ssrn.1100059 https://ink.library.smu.edu.sg/context/lkcsb_research/article/6223/viewcontent/SSRN_id1100059.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Private Equity Leveraged Buyouts Premium M&A Corporate Finance Finance and Financial Management
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Private Equity
Leveraged Buyouts
Premium
M&A
Corporate Finance
Finance and Financial Management
spellingShingle Private Equity
Leveraged Buyouts
Premium
M&A
Corporate Finance
Finance and Financial Management
CAO, Jerry
CUMMING, Douglas J.
GOH, Jeremy
QIAN, Meijun
WANG, Xiaoming
The impact of investor protection law on takeovers: The case of leveraged buyouts
description This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.
format text
author CAO, Jerry
CUMMING, Douglas J.
GOH, Jeremy
QIAN, Meijun
WANG, Xiaoming
author_facet CAO, Jerry
CUMMING, Douglas J.
GOH, Jeremy
QIAN, Meijun
WANG, Xiaoming
author_sort CAO, Jerry
title The impact of investor protection law on takeovers: The case of leveraged buyouts
title_short The impact of investor protection law on takeovers: The case of leveraged buyouts
title_full The impact of investor protection law on takeovers: The case of leveraged buyouts
title_fullStr The impact of investor protection law on takeovers: The case of leveraged buyouts
title_full_unstemmed The impact of investor protection law on takeovers: The case of leveraged buyouts
title_sort impact of investor protection law on takeovers: the case of leveraged buyouts
publisher Institutional Knowledge at Singapore Management University
publishDate 2008
url https://ink.library.smu.edu.sg/lkcsb_research/5224
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6223/viewcontent/SSRN_id1100059.pdf
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