Negotiated Block Trades and Corporate Control Export

@article{citeulike:3326913, abstract = {An examination is made of 106 negotiated trades of at least 5\% of the common stock of New York Stock Exchange (NYSE)- and American Stock Exchange (AMEX)-listed corporations. When a block trades and the firm is not acquired fully, cumulative abnormal returns average 5.6\% and 33\% of the chief executives are replaced within a year. Stock-price increases are larger when control passes to the new blockholder, when management does not resist the blockholder's effort to influence corporate policy, and when the block purchaser eventually fully acquires the firm. These findings indicate that the specific skills and expertise of blockholders - and not just the concentration of ownership - are important determinants of firm value. The modern public corporation is like any other asset in that its value depends in part on the skills of its owners.}, author = {Barclay and Michael, J. and Holderness and Clifford, G.}, citeulike-article-id = {3326913}, journal = {The Journal of Finance}, keywords = {analysis, changes, control, controls, corporate, majority, management, statistical, stockholders, studies, theory}, month = {July}, number = {3}, pages = {861--879}, posted-at = {2008-09-24 02:43:02}, priority = {2}, title = {Negotiated Block Trades and Corporate Control}, volume = {46}, year = {1991} }

TY - JOUR ID - citeulike:3326913 L3 - citeulike-article-id:3326913 N2 - An examination is made of 106 negotiated trades of at least 5% of the common stock of New York Stock Exchange (NYSE)- and American Stock Exchange (AMEX)-listed corporations. When a block trades and the firm is not acquired fully, cumulative abnormal returns average 5.6% and 33% of the chief executives are replaced within a year. Stock-price increases are larger when control passes to the new blockholder, when management does not resist the blockholder's effort to influence corporate policy, and when the block purchaser eventually fully acquires the firm. These findings indicate that the specific skills and expertise of blockholders - and not just the concentration of ownership - are important determinants of firm value. The modern public corporation is like any other asset in that its value depends in part on the skills of its owners. IS - 3 JF - The Journal of Finance EP - 879 TI - Negotiated Block Trades and Corporate Control VL - 46 SP - 861 KW - analysis KW - changes KW - control KW - controls KW - corporate KW - majority KW - management KW - statistical KW - stockholders KW - studies KW - theory AU - Barclay AU - Michael, J AU - Holderness AU - Clifford, G PY - 1991/07// ER -