Large outside blockholders as monitors: Evidence from partial acquisitions

@inproceedings{Park2008LargeOB,
  title={Large outside blockholders as monitors: Evidence from partial acquisitions},
  author={Yun Won Park and Zekiye Selvili and Moon Hyun Song},
  year={2008}
}
  • Yun Won Park, Zekiye Selvili, Moon Hyun Song
  • Published 2008
  • Economics
  • Abstract We investigate the monitoring effect of large outside blockholders by examining the market reaction to partial acquisitions. After removing partial acquisitions which lead to majority control blocks, we study a sample of initial outside block formations. We separate the sample into three groups based on the acquirer’s intent: activist, strategic, and financial. The three-day cumulative abnormal returns (CAR = 17.55%) around activist block purchases are significant both economically and… CONTINUE READING

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