search query: @author Iskandar-Datta, M. / total: 8
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| Author: | Datta, S. Iskandar-Datta, M. |
| Title: | Takeover defenses and wealth effects on securityholders: The case of poison pill adoptions |
| Journal: | Journal of Banking and Finance
1996 : AUG, VOL. 20:7, p. 1231-1250 |
| Index terms: | SECURITIES MERGERS BOND MARKETS |
| Language: | eng |
| Abstract: | This is the first study to examine the valuation effects of any antitakeover amendment on both bondholders and stockholders. We present new evidence documenting that, on average, there is a significant wealth loss experiment by bondholders at poison pill adoption announcement, while stockholders are unaffected. Our finding of significant bondholder losses is consistent with the proposed negative signal hypothesis. We document results which indicate that bondholders correctly anticipate the degree of leverage increase at the time of the announcement. We also show that the proportion of insider ownership is negatively related to bondholder wealth effect at announcement. |
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