A new strategy against hostile takeovers: a model of defense in participations

SERBERA, Jean-Philippe (2017). A new strategy against hostile takeovers: a model of defense in participations. Managerial and Decision Economics, 38 (6), 832-844.

Defense in participations accepted.pdf - Accepted Version
All rights reserved.

Download (872kB) | Preview
[img] PDF (Acceptance email)
Serbera 12582.pdf - Other
Restricted to Repository staff only

Download (157kB)
Official URL: http://onlinelibrary.wiley.com/doi/10.1002/mde.282...
Link to published version:: https://doi.org/10.1002/mde.2820


This article examines the efficacy of a “defense in participations” policy consisting of competitors acquiring cross equity participations within the same industry to prevent hostile takeovers. This defense in participations strategy provides disincentive for raiders as partial ownerships increase market power of competitors and then reinforce the “outsider effect”. Also, we find conditions for a general result which states that takeovers are less profitable in an industry with participations rather than in an industry without any capital links. We provide information to regulators about the positive social impact of cross participations in the context of mergers, and expose an economic dilemma between a “laisser-faire” and an interventionist approach.

Item Type: Article
Uncontrolled Keywords: Management of Technology and Innovation, Management Science and Operations Research, Strategy and Management, Business and International Management
Research Institute, Centre or Group: Sheffield Business School Research Institute > Finance, Accounting and Business Systems
Departments: Sheffield Business School > Department of Finance, Accountancy and Business Systems
Identification Number: https://doi.org/10.1002/mde.2820
Depositing User: Jean-Philippe Serbera
Date Deposited: 21 Jul 2016 08:30
Last Modified: 24 Jul 2018 11:54
URI: http://shura.shu.ac.uk/id/eprint/12582

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics