Shareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused?

11 Pages Posted: 8 Jan 2017

See all articles by Jonathan Kalodimos

Jonathan Kalodimos

Oregon State University - College of Business

Clark Lundberg

San Diego State University

Date Written: January 2, 2017

Abstract

Appraisal rights grant dissenting shareholders in an acquisition the right to petition the court to determine the value of their shares. These rights can protect shareholders from acquisitions below fundamental value or can be abused by opportunistic investors. We examine the use of appraisal rights and find the evidence is most consistent with appraisal rights functioning as recourse when the target firm is sold below fundamental value.

Keywords: Appraisal Rights, Mergers and Acquisitions, Takeover Law

JEL Classification: G34, K22

Suggested Citation

Kalodimos, Jonathan and Lundberg, Clark, Shareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused? (January 2, 2017). Finance Research Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2894434

Jonathan Kalodimos (Contact Author)

Oregon State University - College of Business ( email )

Corvallis, OR 97331
United States

Clark Lundberg

San Diego State University ( email )

San Diego, CA 92182-0763
United States

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