Takeover defenses, ownership structure and stock returns in the Netherlands: an empirical analysis

Mohammed Rezaul Kabir, Dolph Cantrijn, Andreas Jeunink

Research output: Contribution to journalArticleAcademicpeer-review

42 Citations (Scopus)
280 Downloads (Pure)

Abstract

This study empirically examines the relationships between a firm’s takeover defenses and its ownership structure and stock returns. Analyzing data of Dutch listed companies, we find that multiple antitakeover defenses are increasingly adopted when firms are characterized by relatively lower ownership concentration. The evidence supports the hypothesis that more concentrated ownership of shares provides more effective monitoring of managers. As defense by issuing preferred share has recently been the most widely adopted mechanism in the Netherlands, its impact on shareholders’ wealth is also analyzed. We observe the presence of two opposing effects of this antitakeover measure
Original languageEnglish
Pages (from-to)97-109
JournalStrategic management journal
Volume18
Issue number2
DOIs
Publication statusPublished - 1997
Externally publishedYes

Keywords

  • Ownership structure
  • Takeover defense
  • Corporate governance

Fingerprint Dive into the research topics of 'Takeover defenses, ownership structure and stock returns in the Netherlands: an empirical analysis'. Together they form a unique fingerprint.

Cite this