Voluntary use of independent valuation advice by target firm boards in takeovers

Bugeja, M

Voluntary use of independent valuation advice by target firm boards in takeovers

Bugeja, M

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Publication Type:: Journal Article
Citation:: Pacific Basin Finance Journal, 2007, 15 (4), pp. 368 - 387
Issue Date:: 2007-09-01

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Field	Value	Language
dc.contributor.author	Bugeja, M https://orcid.org/0000-0002-1941-5092	en_US
dc.date.issued	2007-09-01	en_US
dc.identifier.citation	Pacific Basin Finance Journal, 2007, 15 (4), pp. 368 - 387	en_US
dc.identifier.issn	0927-538X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/10225
dc.description.abstract	This study examines why target firm directors commission a voluntary expert to assess offer adequacy in Australian takeovers. The results indicate that expert use is higher where the board is rejecting the offer. In addition, experts are hired where the board faces greater complexity in valuing the consideration offered and the target firm. Expert use is found to be in target shareholders' interest as it increases the likelihood that the bidder will increase the offer price. These findings add to existing evidence on whether target board's act in shareholders' interest during corporate control contests. © 2007 Elsevier B.V. All rights reserved.	en_US
dc.relation.ispartof	Pacific Basin Finance Journal	en_US
dc.relation.isbasedon	10.1016/j.pacfin.2006.09.003	en_US
dc.subject.classification	Finance	en_US
dc.title	Voluntary use of independent valuation advice by target firm boards in takeovers	en_US
dc.type	Journal Article
utslib.citation.volume	4	en_US
utslib.citation.volume	15	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	4	en_US
pubs.publication-status	Published	en_US
pubs.volume	15	en_US

Abstract:

This study examines why target firm directors commission a voluntary expert to assess offer adequacy in Australian takeovers. The results indicate that expert use is higher where the board is rejecting the offer. In addition, experts are hired where the board faces greater complexity in valuing the consideration offered and the target firm. Expert use is found to be in target shareholders' interest as it increases the likelihood that the bidder will increase the offer price. These findings add to existing evidence on whether target board's act in shareholders' interest during corporate control contests. © 2007 Elsevier B.V. All rights reserved.

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http://hdl.handle.net/10453/10225