Leverage, ownership structure, and returns to shareholders of target and bidding firms

This paper tests for the joint effects of leverage and ownership structure in target firms on returns to shareholders in both target and bidding firms. For a sample of 81 targets and 81 bidders in successful takeovers covering the years 1980 through 1990, our event-study results indicate that the de...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Raad, Elias (author)
مؤلفون آخرون: Ryan, Robert (author), Sinkey, Joseph F. (author)
التنسيق: article
منشور في: 1999
الوصول للمادة أونلاين:http://hdl.handle.net/10725/4701
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.jstor.org/stable/40473258?seq=1#page_scan_tab_contents
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author Raad, Elias
author2 Ryan, Robert
Sinkey, Joseph F.
author2_role author
author
author_facet Raad, Elias
Ryan, Robert
Sinkey, Joseph F.
author_role author
dc.creator.none.fl_str_mv Raad, Elias
Ryan, Robert
Sinkey, Joseph F.
dc.date.none.fl_str_mv 1999
2016-10-27T08:13:52Z
2016-10-27T08:13:52Z
2016-10-27
dc.identifier.none.fl_str_mv 0747-5535
http://hdl.handle.net/10725/4701
Raad, E., Ryan, R., & Sinkey Jr, J. F. (1999). Leverage, ownership structure, and returns to shareholders of target and bidding firms. Quarterly Journal of Business and Economics, 37-53.
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.jstor.org/stable/40473258?seq=1#page_scan_tab_contents
dc.language.none.fl_str_mv en
dc.relation.none.fl_str_mv Quarterly Journal of Business and Economics
dc.rights.*.fl_str_mv info:eu-repo/semantics/openAccess
dc.title.none.fl_str_mv Leverage, ownership structure, and returns to shareholders of target and bidding firms
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description This paper tests for the joint effects of leverage and ownership structure in target firms on returns to shareholders in both target and bidding firms. For a sample of 81 targets and 81 bidders in successful takeovers covering the years 1980 through 1990, our event-study results indicate that the debt ratios of target firms are associated with significant positive abnormal returns for the shareholders of target firms. Correspondingly, the returns to shareholders of bidding firms are negatively affected by higher leverage in the target firm. In addition, we find that institutional ownership in targets has a positive effect on the excess dollar gains that accrue to their shareholders.
eu_rights_str_mv openAccess
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id LAURepo_dd12186980475ef29c2f7c91b446b1d9
identifier_str_mv 0747-5535
Raad, E., Ryan, R., & Sinkey Jr, J. F. (1999). Leverage, ownership structure, and returns to shareholders of target and bidding firms. Quarterly Journal of Business and Economics, 37-53.
language_invalid_str_mv en
network_acronym_str LAURepo
network_name_str Lebanese American University repository
oai_identifier_str oai:laur.lau.edu.lb:10725/4701
publishDate 1999
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spelling Leverage, ownership structure, and returns to shareholders of target and bidding firmsRaad, EliasRyan, RobertSinkey, Joseph F.This paper tests for the joint effects of leverage and ownership structure in target firms on returns to shareholders in both target and bidding firms. For a sample of 81 targets and 81 bidders in successful takeovers covering the years 1980 through 1990, our event-study results indicate that the debt ratios of target firms are associated with significant positive abnormal returns for the shareholders of target firms. Correspondingly, the returns to shareholders of bidding firms are negatively affected by higher leverage in the target firm. In addition, we find that institutional ownership in targets has a positive effect on the excess dollar gains that accrue to their shareholders.PublishedN/A2016-10-27T08:13:52Z2016-10-27T08:13:52Z19992016-10-27Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article0747-5535http://hdl.handle.net/10725/4701Raad, E., Ryan, R., & Sinkey Jr, J. F. (1999). Leverage, ownership structure, and returns to shareholders of target and bidding firms. Quarterly Journal of Business and Economics, 37-53.http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttp://www.jstor.org/stable/40473258?seq=1#page_scan_tab_contentsenQuarterly Journal of Business and Economicsinfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/47012021-03-19T09:10:12Z
spellingShingle Leverage, ownership structure, and returns to shareholders of target and bidding firms
Raad, Elias
status_str publishedVersion
title Leverage, ownership structure, and returns to shareholders of target and bidding firms
title_full Leverage, ownership structure, and returns to shareholders of target and bidding firms
title_fullStr Leverage, ownership structure, and returns to shareholders of target and bidding firms
title_full_unstemmed Leverage, ownership structure, and returns to shareholders of target and bidding firms
title_short Leverage, ownership structure, and returns to shareholders of target and bidding firms
title_sort Leverage, ownership structure, and returns to shareholders of target and bidding firms
url http://hdl.handle.net/10725/4701
http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php
http://www.jstor.org/stable/40473258?seq=1#page_scan_tab_contents