The Distribution of Target Ownership and the Division of Gains in Successful Takeovers

18 Pages Posted: 23 Sep 2008 Last revised: 30 Jul 2011

See all articles by René M. Stulz

René M. Stulz

Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Moon H. Song

San Diego State University - Finance Department

Ralph A. Walkling

Drexel University - Lebow College of Business

Date Written: 1990

Abstract

This paper presents evidence that the distribution of target ownership is related to the division of the takeover gain between the target and the bidder for a sample of successful tender offers. In the whole sample, the target's gain is negatively related to bidder and institutional ownership. In the sample of multiple-bidder contests, the target's gain increases with managerial ownership and falls with institutional ownership.

Suggested Citation

Stulz, Rene M. and Song, Moon H. and Walkling, Ralph August, The Distribution of Target Ownership and the Division of Gains in Successful Takeovers (1990). The Journal of Finance, Vol. 45, No. 3, pp. 817-833, 1990. Available at SSRN: https://ssrn.com/abstract=918059

Rene M. Stulz (Contact Author)

Ohio State University (OSU) - Department of Finance ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

HOME PAGE: http://www.cob.ohio-state.edu/fin/faculty/stulz

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Moon H. Song

San Diego State University - Finance Department ( email )

5500 Campanile Drive
San Diego, CA 92182-8236
United States
619-673-8925 (Phone)
619-594-1573 (Fax)

Ralph August Walkling

Drexel University - Lebow College of Business ( email )

LeBow College of Business
Philadelphia, PA 19104
United States
(215) 895-4920 (Phone)
(215) 895-6119 (Fax)

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