Ownership, Board Characteristics and Non-hostile Take-overs in the Uk: an Empirical and Predictive Analysis
نویسندگان
چکیده
This paper analyses the corporate governance mechanisms of a sample of companies that have been acquired by friendly take-over and those of a matching control sample that have not. It also uses a holdout sample to assess the model’s ability to correctly classify take-over candidates. The results show that the targets were poor performers and that there are significant governance differences between the friendly take-over targets and the control sample. The inclusion of governance characteristics enables the model to differentiate between target and non-target companies when predicting acquisition probability.
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