Managerial entrenchement or shareholder's interest? The effects of anti-takeover measures on acquisition targets: evidence from the Netherlands
Due to the possible implementation of a new ATM in the Netherlands, it is, again, a hot topic whether Dutch ATMs lead to a Dutch discount. This hypothesized Dutch discount would be a result of the supposedly entrenching effects that Dutch ATMs have. To examine whether the Dutch ATMs lead to the entrenchment of management or benefit the shareholders, this study looks into the effects of Dutch ATMs on target CARs and on takeover probabilities. Prior research has not examined the effects of ATMs on target CARs, nor did it explore the effects of ATMs on takeover probabilities in the most recent decade. A decreasing trend in the use of ATMs is found in this research. Only certificates are found to have a significant (positive) effect on target CARs. Takeover probabilities are not affected by the use of ATMs, which is in line with findings about the period from 1961 to 1985 in The Netherlands.
Faculteit der Managementwetenschappen