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Equal opportunity rule vs. market rule in transfer of control: How can private benefits help to provide an answer?

dc.contributor.authorde La Bruslerie, Hubert
dc.date.accessioned2014-01-29T09:20:34Z
dc.date.available2014-01-29T09:20:34Z
dc.date.issued2013-12
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/12532
dc.language.isoenen
dc.subjectEqual opportunity ruleen
dc.subjecttransfer of controlen
dc.subjecttakeoveren
dc.subjectcontrolling shareholderen
dc.subjectinvestors protectionen
dc.subjectprivate benefitsen
dc.subject.ddc332en
dc.subject.classificationjelG3en
dc.subject.classificationjelG38en
dc.subject.classificationjelK2en
dc.subject.classificationjelG34en
dc.subject.classificationjelG30en
dc.titleEqual opportunity rule vs. market rule in transfer of control: How can private benefits help to provide an answer?en
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenHaving 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.en
dc.relation.isversionofjnlnameJournal of corporate finance
dc.relation.isversionofjnlvol23en
dc.relation.isversionofjnldate2013-12
dc.relation.isversionofjnlpages88–107en
dc.relation.isversionofdoihttp://dx.doi.org/10.1016/j.jcorpfin.2013.07.007en
dc.identifier.urlsitehttp://halshs.archives-ouvertes.fr/halshs-00937543en
dc.relation.isversionofjnlpublisherElsevieren
dc.subject.ddclabelEconomie financièreen
dc.relation.forthcomingnonen
dc.relation.forthcomingprintnonen


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