Block share purchases and corporate performance

• 成果类型: Article
• 署名作者: Bethel, JE; Liebeskind, JP; Opler, T
• 署名单位: Babson College; University of Southern California; University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/0022-1082.244195
• 发表日期: 1998
• 页码: 605-634
• 关键词: poison pill securities; Ownership structure; SHAREHOLDER WEALTH; ANTITAKEOVER AMENDMENTS; empirical-analysis; Firm value; STOCK; mechanisms; MARKET

摘要

This paper investigates the causes and consequences of activist flock share purchases in the 1980s. We find that activist investors were most likely to purchase large blocks of shares in highly diversified firms with poor profitability. Activists were not less likely to purchase blocks in firms with shark repellents and employee stock ownership plans. Activist block purchases were followed by increases in asset divestitures, decreases in mergers and acquisitions, and abnormal share price appreciation. Industry-adjusted operating profitability also rose. This evidence supports the view that the market for partial corporate control plays an important role in limiting agency costs in U.S. corporations.