SHAREHOLDERS RIGHTS

Shareholders’ Pre-Emptive Rights

Large Shareholders and Corporate Control

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your perso...

Shareholders vs Stakeholders Capitalism

Advising Shareholders In Takeovers

This paper studies the advisory role of a target company board in takeovers. I show that coordination failures among target shareholders, such as free-riding, limit the board’s ability to properly advise shareholders whether accepting a takeover o¤er is in their best interest based on its information. Even if there are no agency problems and the board’s objective is to maximize shareholders’val...

Targeting target shareholders∗

We integrate heterogeneity and uncertainty in investor valuations into a model of takeovers. Investors have dispersed valuations, holding shares in firms they value more highly, and a successful offer must win approval from the median target shareholder. We derive the consequences for an acquiring firm’s takeover offer—its size and cash/equity structure—and implications for takeover premia and ...