원문정보
초록
영어
The paper examines the use of go-shop provisions in merger agreements. Using the sample of 1,254 M&A deals involving U.S targets between 2004 and 2008, we find that 95 deals include go-shop provisions. The empirical results show that go-shop deals tend to have higher deal premiums and receive more competing bids. The length of go-shops, however, does not affect deal premiums and competition. Deals are less likely to be consummated when go-shop provisions are included and when the length of go-shops is longer. However, go-shops have no effect on the consummation of high premium deals. Overall, our findings generally support the proposition that go-shops reflect target managers’ efforts to fulfill the Revlon duties, consistent with Subramanian (2008).
목차
1. Introduction
2. Data, Variable Description, and Sample Statistics
A. Data
B. Variable Description
C. Sample Statistics
3. Effects of Go-Shops on Target Shareholders’ Wealth
A. Univariate Tests
B. Effects on Deal Premiums
C. Effects on Post-Bid Competition
D. Effects on Deal Completion
4. Conclusion
References
Table