Essays on corporate takeovers

Cara Vansteenkiste

Research output: ThesisDoctoral ThesisScientific

Abstract

This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As). The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance. The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts. The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak. The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.
LanguageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Renneboog, Luc, Promotor
  • Manconi, Alberto, Promotor
Award date18 Jun 2018
Place of PublicationTilburg
Publisher
Print ISBNs978 90 5668 561 4
StatePublished - 2018

Fingerprint

Corporate takeovers
Cross-border
Firm performance
Shareholders
Enforcement
Social security
Announcement
Information asymmetry
Bid
Country differences
Monetary incentives
Mergers and acquisitions
Shareholder value
Employees
Value creation
Bidding
Health insurance
Bond returns
Minorities
Overbidding

Cite this

Vansteenkiste, C. (2018). Essays on corporate takeovers Tilburg: CentER, Center for Economic Research
Vansteenkiste, Cara. / Essays on corporate takeovers. Tilburg : CentER, Center for Economic Research, 2018. 252 p.
@phdthesis{57ddfd7cd14f4ca0b9217bdcf01c2843,
title = "Essays on corporate takeovers",
abstract = "This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As). The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance. The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts. The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak. The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.",
author = "Cara Vansteenkiste",
note = "CentER Dissertation Series Volume: 560",
year = "2018",
language = "English",
isbn = "978 90 5668 561 4",
series = "CentER Dissertation Series",
publisher = "CentER, Center for Economic Research",
school = "Tilburg University",

}

Vansteenkiste, C 2018, 'Essays on corporate takeovers', Doctor of Philosophy, Tilburg University, Tilburg.

Essays on corporate takeovers. / Vansteenkiste, Cara.

Tilburg : CentER, Center for Economic Research, 2018. 252 p.

Research output: ThesisDoctoral ThesisScientific

TY - THES

T1 - Essays on corporate takeovers

AU - Vansteenkiste,Cara

N1 - CentER Dissertation Series Volume: 560

PY - 2018

Y1 - 2018

N2 - This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As). The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance. The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts. The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak. The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.

AB - This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As). The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance. The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts. The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak. The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.

M3 - Doctoral Thesis

SN - 978 90 5668 561 4

T3 - CentER Dissertation Series

PB - CentER, Center for Economic Research

CY - Tilburg

ER -

Vansteenkiste C. Essays on corporate takeovers. Tilburg: CentER, Center for Economic Research, 2018. 252 p. (CentER Dissertation Series).