IDEAS home Printed from https://ideas.repec.org/a/ers/ijfirm/v10y2020i4p40-49.html
   My bibliography  Save this article

An Overview of Takeover Defenses and the Characteristics of the Economy

Author

Listed:
  • Isidora Tachmatzidi

Abstract

Purpose: The present paper offers an overview of takeover defenses and an analysis of the way in which economic structures and characteristics may influence the presence of takeovers and takeover defenses. Design/Methodology/Approach: A brief definition of takeovers and takeover defenses is presented, followed by a thorough analysis of the different types of takeover defenses, frustrating and defensive actions. Then, there is an analysis of the economic structures and characteristics that may influence the employment of takeovers and defenses as well as their in-between interaction. Findings: In economies which have dispersed ownership structures, contestability and higher investment strategies more hostile takeovers tend to occur and consequently, takeover defenses, whereas economies in which ownership is more concentrated takeovers are not employed frequently. Practical Implications: The present article aims to offer a clarification on the interaction between takeover defenses and characteristics of the economy. Also, the analysis indicates the importance of the regulatory framework regarding these issues, taking into consideration the differences in the structure of the economies. Originality/Value: It provides the framework to develop potential regulation and policies regarding takeovers and takeover defenses in order to promote EU harmonization and global cooperation.

Suggested Citation

  • Isidora Tachmatzidi, 2020. "An Overview of Takeover Defenses and the Characteristics of the Economy," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(4), pages 40-49.
  • Handle: RePEc:ers:ijfirm:v:10:y:2020:i:4:p:40-49
    as

    Download full text from publisher

    File URL: https://journalfirm.com/journal/231/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Isidora Tachmatzidi, 2017. "Takeover Defenses in the Greek Economy," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 133-145.
    2. Marc Goergen, 2005. "Corporate Governance Convergence: Evidence From Takeover Regulation Reforms in Europe," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 21(2), pages 243-268, Summer.
    3. repec:ers:journl:v:vi:y:2018:i:4:p:105-118 is not listed on IDEAS
    4. repec:ers:journl:v:v:y:2017:i:4:p:133-145 is not listed on IDEAS
    5. Isidora Tachmatzidi, 2018. "Takeover Defenses in the United Kingdom," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 105-118.
    6. Isidora Tachmatzidi, 2019. "Comparative Analysis of Takeover Defenses in Strong and Weak Economies: The Paradigm of the UK and Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 254-264.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Isidora Tachmatzidi, 2019. "Comparative Analysis of Takeover Defenses in Strong and Weak Economies: The Paradigm of the UK and Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 254-264.
    2. Rudi Zulfikar & Nana Nofianti & Kurniasih Dwi Astuti & Meutia Meutia & Aldi Ramadan, 2020. "The Role of Ownership’s Concentration Moderating Dividend Policy Effects on Firm Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 126-135.
    3. Dimitrios Maditinos & Alexandra Tsinani & Zeljko Sevic & Jelena Stankeviciene, 2019. "Financially Constrained Firms: The Impact of Managerial Optimism and Diversification on Firms’ Excess Value: The Case of Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-15.
    4. Penyugalova A.V. & Platonova Yu.Yu. & Pyshnogray A.P. & Samsonenko V.A., 2019. "Evolution of Banking Mergers and Acquisitions Market in Russia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 501-509.
    5. Renneboog, L.D.R. & Simons, T., 2005. "Public-to-Private Transactions : LBOs, MBOs, MBIs and IBOs," Other publications TiSEM 3b76799c-591c-4d22-b126-a, Tilburg University, School of Economics and Management.
    6. Goergen, Marc & Manjon, Miguel C. & Renneboog, Luc, 2008. "Recent developments in German corporate governance," International Review of Law and Economics, Elsevier, vol. 28(3), pages 175-193, September.
    7. Baele, Lieven & Pungulescu, Crina & Ter Horst, Jenke, 2007. "Model uncertainty, financial market integration and the home bias puzzle," Journal of International Money and Finance, Elsevier, vol. 26(4), pages 606-630, June.
    8. Mateev, Miroslav & Andonov, Kristiyan, 2018. "Do European bidders pay more in cross-border than in domestic acquisitions? New evidence from Continental Europe and the UK," Research in International Business and Finance, Elsevier, vol. 45(C), pages 529-556.
    9. Marina Martynova & Luc Renneboog, 2010. "Spillover of Corporate Governance Standards in Cross-Border Mergers and Acquisition," Chapters, in: Alessio M. Pacces (ed.), The Law and Economics of Corporate Governance, chapter 3, Edward Elgar Publishing.
    10. Martynova, M. & Renneboog, L.D.R., 2010. "A Corporate Governance Index : Convergence and Diversity of National Corporate Governance Regulations," Discussion Paper 2010-17, Tilburg University, Center for Economic Research.
    11. Hubert de La Bruslerie, 2010. "The Equal Opportunity Rule in Transfer of Control: A Contractual Model," Post-Print halshs-00636613, HAL.
    12. Köhler, Matthias, 2009. "Blockholdings and corporate governance in the EU banking sector," ZEW Discussion Papers 08-110 [rev.], ZEW - Leibniz Centre for European Economic Research.
    13. Matthias Köhler, 2012. "Ownership structure, regulation and the market for corporate control in the EU banking sector," European Journal of Law and Economics, Springer, vol. 34(1), pages 173-196, August.
    14. Renneboog, Luc & Vansteenkiste, Cara, 2017. "Leveraged Buyouts : A Survey of the Literature," Discussion Paper 2017-015, Tilburg University, Center for Economic Research.
    15. Inder K. Khurana & Wei Wang, 2019. "International Mergers and Acquisitions Laws, the Market for Corporate Control, and Accounting Conservatism," Journal of Accounting Research, Wiley Blackwell, vol. 57(1), pages 241-290, March.
    16. Mike Burkart & Samuel Lee, 2008. "One Share - One Vote: the Theory," Review of Finance, European Finance Association, vol. 12(1), pages 1-49.
    17. Goergen, Marc & Renneboog, Luc, 2008. "Contractual corporate governance," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 166-182, June.
    18. Rowoldt, Maximilian & Starke, Dennis, 2016. "The role of governments in hostile takeovers – Evidence from regulation, anti-takeover provisions and government interventions," International Review of Law and Economics, Elsevier, vol. 47(C), pages 1-15.
    19. de La Bruslerie, Hubert, 2013. "Equal opportunity rule vs. market rule in transfer of control: How can private benefits help to provide an answer?," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 88-107.
    20. Martynova, M. & Renneboog, L.D.R., 2006. "Mergers and Acquisitions in Europe," Discussion Paper 2006-6, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    Takeovers; takeover defenses; legal framework; economy structure; hostile takeovers; frustrating actions; defensive actions; market for corporate control; ownership structure; EU; Eurozone; Brexit; dispersed structure; concentrated structure; contestability; strong economy; weak economy; privatisation; investments.;
    All these keywords.

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijfirm:v:10:y:2020:i:4:p:40-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://journalfirm.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.