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Non-controlling minority shareholdings in rivals (NCMS) lower the sus- tainability of collusion under a wide variety of circumstances. Nevertheless, NCMS are sometimes deemed to facilitate collusion, in particular if the level of NCMS is exogenous. The present paper endogenizes firms' choice of...
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Non-controlling minority shareholdings in rivals (NCMS) lower the sustainability of collusion under a wide variety of circumstances. Nevertheless, NCMS are sometimes deemed to facilitate collusion, in particular if the level of NCMS is exogenous. The present paper endogenizes firms' choice of...
Persistent link: https://www.econbiz.de/10012287557
shareholder derivative litigations more difficult, we show that reduced litigation threats improve corporate takeover efficiency … postmerger operating performance after the UD laws. Further analysis suggests that acquirers make suboptimal merger decisions to … avoid litigation. Taken together, we show that litigation risk can distort managers' incentives and destroy value ex ante …
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