Title: Large shareholders and value creation through corporate acquisitions in Europe: The identity of the controlling shareholder matters
Authors: Craninckx, Katrien
Huyghebaert, Nancy
Issue Date: 2013
Conference: FMA European Conference location:Luxembourg City, Luxembourg date:12-14 June 2013
Abstract: This paper examines the impact of large acquirer shareholders on M&A value effects for 342 European takeovers completed in 1997–2007. Family-controlled firms on average generate more positive M&A value effects than other firms. Market participants thus seem to appreciate the long-term investment horizon typically held by controlling families in European listed firms. Interestingly, we show that this positive family effect is not related to a more efficient monitoring of management, since family owners cannot curb the negative association between managerial hubris and M&A value effects. In addition, the positive family effect disappears in industry-diversifying acquisitions, which implies that family owners in Europe may use corporate diversification to pursue diversification of the family wealth. Large institutional owners can curb managerial hubris, yet acquirers controlled by institutional block holders can never outperform family-controlled acquirers
Publication status: published
KU Leuven publication type: IMa
Appears in Collections:Research Center Finance, Leuven
Department of Accountancy, Finance and Insurance (AFI), Leuven - miscellaneous
Faculty of Economics and Business (FEB) - miscellaneous
Faculty of Economics and Business (FEB), Campus Carolus Antwerp - miscellaneous

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