Investors' activism and the gains from takeover deals

Jie (Michael) Guo, Krishna Paudyal, Vinay Utham, Xiaofei Xing

Research output: Contribution to journalArticle

Abstract

We examine whether activists add value to the shareholders of targets and their acquirers. Several findings emerge. First, acquirers of targets that have activists outperform acquirers of other targets in both the short and long term. Second, the premium received by the shareholders of targets is not affected by activism. Third, superior gains achieved by the acquirers of targets with activists are driven by non-cash deals, while the average target benefits more from cash deals.

LanguageEnglish
Pages64-83
Number of pages20
JournalEuropean Journal of Finance
Volume26
Issue number1
Early online date23 Oct 2019
DOIs
Publication statusE-pub ahead of print - 23 Oct 2019

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Activism
Investors
Shareholders
Cash
Premium

Keywords

  • hedge funds
  • investor activism
  • mergers and acquisitions
  • event studies

Cite this

Guo, Jie (Michael) ; Paudyal, Krishna ; Utham, Vinay ; Xing, Xiaofei. / Investors' activism and the gains from takeover deals. In: European Journal of Finance. 2020 ; Vol. 26, No. 1. pp. 64-83.
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Investors' activism and the gains from takeover deals. / Guo, Jie (Michael); Paudyal, Krishna; Utham, Vinay; Xing, Xiaofei.

In: European Journal of Finance, Vol. 26, No. 1, 31.01.2020, p. 64-83.

Research output: Contribution to journalArticle

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