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

Rezaul Kabir; Dolph Cantrijn; Andreas Jeunink

doi:10.4324/9780203940136

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

Rezaul Kabir^*, Dolph Cantrijn, Andreas Jeunink

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review

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 language	English
Title of host publication	Corporate Governance and Corporate Finance
Subtitle of host publication	A European Perspective
Editors	Ruud A.I. van Frederikslust, James S. Ang, P.S. Sudarsanam
Publisher	Routledge
Chapter	25
Pages	647-661
Number of pages	15
ISBN (Electronic)	9780203940136
ISBN (Print)	020394013X
DOIs	https://doi.org/10.4324/9780203940136
Publication status	Published - 19 Dec 2007

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10.4324/9780203940136

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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.",

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Takeover defenses, ownership structure and stock returns in the Netherlands: An empirical analysis. / Kabir, Rezaul; Cantrijn, Dolph; Jeunink, Andreas.
Corporate Governance and Corporate Finance: A European Perspective. ed. / Ruud A.I. van Frederikslust; James S. Ang; P.S. Sudarsanam. Routledge, 2007. p. 647-661.

Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review

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

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