Minority Shareholders' Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As

Ettore Croci, Dimitris Petmezas

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

22 Citazioni (Scopus)

Abstract

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 market capitalization. We provide evidence supporting the view that minority shareholders in target firms gain significantly more in countries with high stock market development than their counterparts in less-developed markets. Our results are robust to several firm and deal characteristics and provide evidence to policy makers that the degree of stock market development is a key determinant in improving minority shareholders welfare.
Lingua originaleEnglish
pagine (da-a)681-694
Numero di pagine14
RivistaJOURNAL OF BANKING & FINANCE
Volume34
Stato di pubblicazionePubblicato - 2010

Keywords

  • Minority Shareholders
  • Ownership
  • event study
  • financial development

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