An international study of shareholder protection in freeze-out M&A transactions
Document Type
Article
Publication Title
International Review of Financial Analysis
ISSN
1057-5219
Volume
45
DOI
10.1016/j.irfa.2016.03.011
First Page
157
Last Page
171
Publication Date
5-1-2016
Abstract
Freeze-out M&A transactions are those initiated by controlling shareholders to acquire minority shareholders' ownership in the firm. We compare international freeze-out mergers in 35 countries in merger premium, choice of payment, and completion probability. We find greater merger premium and probability of cash payment but lower deal completion rates in countries with stronger minority shareholder protection. Using detailed minority shareholder protection indexes, we find some evidence that the ex-post anti-self-dealing law enforcement is more important than the ex-ante anti-self-dealing law regulation in protecting minority shareholder value. Our study provides new evidence of minority shareholder protection in the setting of conflicts of interest between majority and minority shareholders.
Recommended Citation
Ouyang, W.,
&
Zhu, P.
(2016).
An international study of shareholder protection in freeze-out M&A transactions.
International Review of Financial Analysis, 45, 157–171.
DOI: 10.1016/j.irfa.2016.03.011
https://scholarlycommons.pacific.edu/esob-facarticles/343
