Equal opportunity rule vs. market rule in transfer of control: How can private benefits help to provide an answer?
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, 23, p. 88–107. http://dx.doi.org/10.1016/j.jcorpfin.2013.07.007
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Article accepté pour publication ou publiéLien vers un document non conservé dans cette base
http://halshs.archives-ouvertes.fr/halshs-00937543Date
2013-12Nom de la revue
Journal of corporate financeVolume
23Éditeur
Elsevier
Pages
88–107
Identifiant publication
Métadonnées
Afficher la notice complèteAuteur(s)
de La Bruslerie, HubertRésumé (EN)
Having been introduced in the European Union and in many other countries, the equal opportunity rule is seen as protecting investors in the event of a transfer of control. This rule should be analyzed in a context of appropriation of private benefits between the new controlling shareholders and the outside investors. Both parties need to design a new implicit contract to share the firm's ownership. Using a signaling model, we show that the new controlling shareholder issues signals to outside shareholders to deliver private information on a firm's future economic return and her private rate of appropriation. The ownership stake of the controlling shareholder and the premium embedded in the acquisition price are key parameters. In a controlling ownership system, the equal opportunity rule modifies the relative behavior of controlling and outside shareholders. The quality of information deteriorates but the discipline on appropriation may become stronger.Mots-clés
Equal opportunity rule; transfer of control; takeover; controlling shareholder; investors protection; private benefitsPublications associées
Affichage des éléments liés par titre et auteur.
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de La Bruslerie, Hubert (2009) Document de travail / Working paper
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de La Bruslerie, Hubert (2014-05) Communication / Conférence
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De La Bruslerie, Hubert; Gueguen, Simon (2021) Article accepté pour publication ou publié
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de La Bruslerie, Hubert (2011) Communication / Conférence
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Minchella, Delphine (2015-05) Thèse