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Comparative Analysis of Takeover Defenses in Strong and Weak Economies: The Paradigm of the UK and Greece

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  • Isidora Tachmatzidi

Abstract

Purpose: The present paper analyses the interaction between takeover defenses and the strength of the economy in two countries, the United Kingdom (UK) and Greece. Both have implemented the EU Takeover Directive in their jurisdictions but have significant differences in the characteristics of their economies. Design/Methodology/Approach: A brief description of takeovers and potential takeover defenses is provided, followed by the presentation of the two countries’ economic market highlighting the factors that have led to two separate market structures. Subsequently, a thorough comparative discussion is presented on the different application of takeover defenses in the UK and Greece in relation to their economic and market characteristics with reference to the European Union harmonization. Findings: The UK is considered a strong economy operating in a market for corporate control with dispersed ownership structure, therefore takeover defences are encountered regularly, whereas Greece is viewed as a weak economy operating in a premature non-contestable market with concentrated ownership structure and thus, takeover defences are less encountered. Practical Implications: The comparative research on takeover defenses between these two countries aims to promote the understanding of the operation of takeover defenses in economies with differences in strength, especially within the concept of EU harmonization. The analysis also, aims to offer further knowledge on the way economic growth and market structure characteristics influence takeover defenses and vice-versa. Originality/Value: Moreover, it provides a framework for the consideration of the consequences in the light of UK exiting the EU as well as for the potential policies to be implemented both in the UK and in the EU.

Suggested Citation

  • 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.
    • Handle: RePEc:ers:journl:v:xxii:y:2019:i:2:p:254-264
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    References listed on IDEAS

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    1. repec:ers:journl:v:vi:y:2018:i:1:p:54-60 is not listed on IDEAS
    2. 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.
    3. 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.
    4. repec:ers:journl:v:vi:y:2018:i:4:p:105-118 is not listed on IDEAS
    5. Augustine C. Arize & Giuliana Campanelli Andreopoulos & Ioannis N. Kallianiotis & John Malindretos, 2018. "MNC Transactions Foreign Exchange Exposure: An Application," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 54-60.
    6. repec:ers:journl:v:v:y:2017:i:4:p:133-145 is not listed on IDEAS
    7. 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.
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    Cited by:

    1. 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.
    2. Posnaya & E.A. & Vorobyova & I.G. & Ditsulenko O.I. & Kaznova & M.I., 2019. "Strategy and Tactics of Bank Capital Assessment," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 2), pages 393-399.
    3. 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.
    4. S.I. Kubiv & N.S. Bobro & G.S. Lopushnyak & Y.I. Lenher & A. Kozhyna, 2020. "Innovative Potential in European Countries: Analytical and Legal Aspects," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 250-264.
    5. 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.

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    More about this item

    Keywords

    Takeovers; takeover defenses; hostile takeovers; legal framework; economy structure; dispersed structure; concentrated structure; contestable market; frustrating actions; defensive actions; Brexit; UK economy; Greek economy; privitization; amendments; EU harmonisation.;
    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
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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