Can Antitakeover Activity Really Create Wealth? Evidence from Australia  

Oleh:

Armstrong, Scott ; Lange, Helen ; Woo, Li-Anne

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Asia Pacific Journal of Management vol. 11 no. 2 (Okt. 1994), page 327-343.
Fulltext: Scott Armstrong.pdf (47.78KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: AA66 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Management-induced antitakeover activity that occurred in Australia in the late 1980s is examined. The particular event examined is unique in Australia and requires shareholder approval to amend a company's articles of association to incorporate an antitakeover clause, generally called a "shark repellent." The analysis uses data on shark repellent announcements for 37 companies between 1986 and 1990. A standard event study methodology reveals significant positive cumulative average abnormal returns (CAAR) for each of the 50-day, 30-day, and 10-day intervals surrounding the announcements. The results provide evidence that announcements of proposed partial antitakeover amendments have a positive effect on stock prices, and the predominance of positive average abnormal returns indicates support for the shareholder interests hypothesis. Given the institutional environment in which the events took place in Australia, these results are more robust than those of previous studies using US data.

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