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We analyze how legal rules affect a firm's decisions to go public, design of securities and initial ownership structure. By extensively using dual-class shares, Swedish IPOs are primarily privately controlled firms that owners take public to maintain control, to raise new capital and to expand by stock financed acquisitions. 50% return for a seasoned equity(More)
One potential reason for bubbles evolving prior to the financial crisis was excessive risk taking stemming from option-like incentive schemes in financial institutions. By running laboratory asset markets, we investigate the impact of option-like incentives on price formation and trading behavior. The main results are that (i) we observe significantly(More)
We study the short-and long-term valuation effects of Swedish takeovers. Using a sample of 93 bidding firms that acquired 101 targets between 1980 and 1995, we find that diversifying acquisitions lead to a negative market reaction and deterioration of the operating performance of the bidder. Announcement and performance gains in each of the three years(More)
  • Ettore Croci, Dimitris Petmezas, +5 authors David Pompilio
  • 2009
This paper examines, using a global M&A data set, the relationship between the target firm's minority shareholders' returns and a country's stock market development in deals in which large shareholders increase their ownership stakes. For the purpose of this study, we use two measures of stock market development: (1) turnover over GDP, and (2) turnover over(More)
Some studies have provided evidence that dual class shares reduce firm market value. Other studies have shown that dual class shares are more common in countries where the proxies for private benefits of control are low. In this paper we explore whether the negative relation between firm market value and dual class shares can be explained by lower takeover(More)
To my family Acknowledgements The meaning of life for me is experiencing new things and learning from them. Enrolling in the Ph.D. program has enabled me to gain invaluable experiences along the way. Though only my name appears on the cover of this dissertation, many people have helped me to produce it. I am indebted to all of them: it would not have been(More)
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