The Impact of Shareholder Power on Bondholders: Evidence from Mergers and Acquisitions

@article{Makhija2006TheIO,
  title={The Impact of Shareholder Power on Bondholders: Evidence from Mergers and Acquisitions},
  author={Anil K. Makhija and Angie Low and Anthony B. Sanders},
  journal={ERN: Governance \& Ownership (Topic)},
  year={2006}
}
Takeovers result in the transfer of bondholders' claims from the target to the acquiring firm, providing a setting to examine the impact of shareholder power on bondholders. We find that excess returns to target bondholders at M & A announcements are positively related to the holdings of the top 5 acquirer institutional owners, a measure of shareholder power. This supports the view that stronger shareholder power, through superior monitoring of managers, can be beneficial to bondholders as well… Expand
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