Paper Title:
How Does Equity Structure Impact M&A Decision? a Model Based on Private Benefits
  Abstract

This paper focus on the private benefit of large shareholder’s control right within the framework of Agency Theory 2 and construct a model which can illustrate how M&A decision can be impacted by acquirer’s equity structure. The model internalizes large shareholder’s private benefit as a function of the shareholding ratio and specifies the mechanism through which large shareholder’s shareholding ratio and ownership concentration impact the M&A decision. This paper provides theoretical foundation for those empirical literatures which analyze the M&As from the perspective of Agency Theory 2.

  Info
Periodical
Advanced Materials Research (Volumes 271-273)
Edited by
Junqiao Xiong
Pages
742-747
DOI
10.4028/www.scientific.net/AMR.271-273.742
Citation
Z. Jia, L. Y. Han, "How Does Equity Structure Impact M&A Decision? a Model Based on Private Benefits", Advanced Materials Research, Vols. 271-273, pp. 742-747, 2011
Online since
July 2011
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Price
$32.00
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