We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Corporate Raiders, Performance and Governance in Europe.
- Authors
Croci, Ettore
- Abstract
I analyse 136 block purchases made by corporate raiders in Europe between 1990 and 2001. Contrary to the hypothesis that these investors expropriate the target companies, there is a positive market reaction to the first public announcement of these purchases. In the long-run, raiders earn an abnormal profit when they sell their stakes. When they still held their positions at the end of the sample period, abnormal returns were insignificant. Raiders' activities do not improve operating performance. The findings are consistent with superior stock picking ability among these investors, but do not support the hypothesis that raiders are governance champions.
- Subjects
EUROPE; CORPORATE governance; CORPORATE raiders; INVESTORS; CORPORATIONS; FINANCIAL management
- Publication
European Financial Management, 2007, Vol 13, Issue 5, p949
- ISSN
1354-7798
- Publication type
Article
- DOI
10.1111/j.1468-036X.2007.00387.x