Publication Type
Working Paper
Version
publishedVersion
Publication Date
3-2008
Abstract
This paper examines the impact of investor protection on the value creation of LBOs. We find that target shareholders’ wealth gain is higher in countries with better investor protection. The impact of investor protection on takeover premium is larger for LBO than non-LBO transactions. We also find evidence suggesting that club LBOs are not priced lower than non-club deals after accounting for endogeneity problem. These results suggest that investor protection law may act as an important safeguard for minority shareholders in LBO transactions.
Keywords
Private Equity, Leveraged Buyouts, Premium, M&A
Discipline
Corporate Finance | Finance and Financial Management
Research Areas
Finance
First Page
1
Last Page
37
Identifier
10.2139/ssrn.1100059
Citation
CAO, Jerry; CUMMING, Douglas J.; GOH, Jeremy; QIAN, Meijun; and WANG, Xiaoming.
The impact of investor protection law on takeovers: The case of leveraged buyouts. (2008). 1-37.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5224
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.1100059