CROSS SHAREHOLDING AND INITIATIVE EFFECTS
Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 2
Abstract
Cross shareholding can make takeovers more difficult but may be beneficial for shareholders if the manager?s private benefits align with shareholders? benefits. Cross shareholding is more likely to take place as the congruence of interests between managers and shareholders increases, the manager?s private benefits become greater, the manager?s reservation utility is lower, and the shareholders? share of the takeover becomes smaller. Due to the lack of monitoring, corporate value tends to be smaller with cross shareholding.
Authors and Affiliations
Yasuhiro Arikawa| Graduate School of Finance, Accounting and Law, Waseda University; Nihonbashi 1-Chome Building, Nihonbashi, Chuo-ku, Tokyo, Japan, Atsushi Kato*| School of Business, Aoyama Gakuin University, Shibuya, Shibuya-ku, Tokyo, Japan
Keywords
Related Articles
- EP ID EP2167
- DOI -
- Views 459
- Downloads 35
FINANCING OBSTACLES OF BANGLADESHI FIRMS: EVIDENCE FROM PRE-CRISIS AND POST-CRISIS PERIODS
Access to finance appears to be among the most severe obstacles of the private firms? growth particularly in developing and less developed countries. Using the micro data over 1,500 enterprises, our study aims to underst...
INVESTIGATING THE CAUSAL RELATIONSHIP BETWEEN STOCK MARKET AND AGGREGATE ECONOMIC PERFORMANCE OF SOUTH AFRICA
Stock is one of the key securities traded in the capital markets and as such, has attracted the attention of researchers. While it is said to propel economic activities, empirical studies conducted on different countries...
AN ERROR CORRECTION REPRESENTATION OF MARKET LIQUIDITY – ECONOMIC GROWTH NEXUS IN NIGERIA: A RECENT EXPERIENCE
The study examines the relationship between market liquidity and economic growth in Nigeria over the period of 1987-2012 using time series data. The starting point of our analysis was to check for the time series propert...
DETERMINANTS OF CHILDREN’S HEALTH FOR HUMAN CAPITAL ACCUMULATION: EMPIRICAL ANALYSIS
In this paper we study the determinants of children health resources for human capital accumulation on a sample of children living in Cameroon. Data are from Demographic and Health Survey (DHS-III). We find that using or...
THE IMPACT OF ECONOMIC FREEDOM UPON ECONOMIC GROWTH: AN APPLICATION ON DIFFERENT INCOME GROUPS
The objective of the study is to investigate the relationship between economic growth and economic freedom for different income groups. Therefore, the data were collected from 94 different countries belonging to five dif...