The impact of investor protection law on global takeovers: LBO vs. non-LBO transactions

• Main Authors: CAO, Xiaping, CUMMINGS, Douglas, GOH, Jeremy C., WANG, Xiaoming
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Leveraged buyouts; Legal environment; Law; Premium; Shareholder rights; Club deals; Value effect; Investor protection; Corporate Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6683; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7682/viewcontent/Impact_investor_protection_law_LBO_2019_av.pdf
• Institution: Singapore Management University

This paper examines the impact of investor protection laws on value creation in LBOs versus non-LBO takeovers. We find that value creation measured by takeover premium is significantly higher in countries with better investor protection. The value effect of investor protection laws is more pronounce...