search query: @journal_id 56 / total: 1032
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| Author: | Powell, R. G. |
| Title: | Modelling takeover likelihood |
| Journal: | Journal of Business Finance and Accounting
1997 : SEP, VOL. 24:7-8, P. 1009-1030 |
| Index terms: | MERGERS MODELS MANAGEMENT SHAREHOLDERS |
| Language: | eng |
| Abstract: | In an attempt to better understand the motives behind takeovers, this study employs a multinomial logit model. The results suggest that the characteristics of friendly and hostile targets differ significantly. The results suggest that the use of a binomial specification to model takeover likelihood is likely to be incorrect and conclusions based on such a model are likely to be misleading and result in incorrect inferences regarding the characteristics of firms subject to takeover. The results give strong support for the use of the multinomial framework in modelling takeover likelihood. There is a role for both firm-specific and industry-specific characteristics in understanding the likelihood of hostile takeovers. |
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