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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2008
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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 |
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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 |
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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. |
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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 |
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impact of investor protection law on takeovers: the case of leveraged buyouts |
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Institutional Knowledge at Singapore Management University |
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2008 |
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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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