Bennedsen, Morten; Nielsen, Kasper Meisner; Nielsen, … - In: Journal of Corporate Finance 18 (2012) 4, pp. 904-918
We identify two opposing effects of issuing equity with tag-along rights that secure an equal price in the event of a takeover. First, the anti-self dealing effect commits controlling owners to sell only to new owners that increase shareholder value. Second, the rent transfer effect shifts rents...