| Popis: |
In this paper we both theoretically and empirically consider the joint nature of two ownermanager conflict resolution mechanisms: insider shareholdings, α, and shareholder concentration, γ. We find evidence of a significant entrenchment effect for high α, low γ firms. Moreover, bidder returns are found to be positive for high α, high γ firms only. We utilize a switching of regression regimes model to solve for critical values of α and γ that subdivide the universe of acquiring firms into separate and distinct ownership structure regimes, i.e., that define ‘high’ vs. ‘low’ levels of α or γ. |
