Breadcrumb

 
 

Acquisition stock performance : do ownership and outside directors matter?

Title:

Acquisition stock performance : do ownership and outside directors matter?

Tang, Ya (2004) Acquisition stock performance : do ownership and outside directors matter? Masters thesis, Concordia University.

[img]
Preview
PDF - Accepted Version
4Mb

Abstract

In this study, we examine how corporate internal control mechanisms, including the percentage ownership by executive officers and directors and the proportion of outside directors on the board of directors, affect the market's perception of corporate acquisition decisions. The evidence suggests that in the period around acquisition announcements, the use of insider ownership and outside directors disciplines managers to make decisions that the market perceives as better reflecting the interests of shareholders. The combination of stock ownership and outside director monitoring is perceived as providing a better control system for top management than the sole use of either of these two external governance mechanisms. Compared to firms with low insider ownership interest, acquirers with high ratios of officer and director ownership pay less for targets that have higher growth opportunities. With regard to the longer post-acquisition period, ex post market performance is consistent with outside directors (but not insider ownership) acting in shareholders interests.

Divisions:Concordia University > John Molson School of Business
Item Type:Thesis (Masters)
Authors:Tang, Ya
Pagination:vii, 68 leaves ; 29 cm.
Institution:Concordia University
Degree Name:M. Sc. Admin.
Program:John Molson School of Business
Date:2004
Thesis Supervisor(s):Kryzanowski, Lawrence
ID Code:8110
Deposited By:Concordia University Libraries
Deposited On:18 Aug 2011 14:15
Last Modified:18 Aug 2011 15:46
Related URLs:
All items in Spectrum are protected by copyright, with all rights reserved. The use of items is governed by Spectrum's terms of access.

Repository Staff Only: item control page

Document Downloads

More statistics for this item...

Concordia University - Footer