Journal of Finance Vol. 45 No. 3 1990

The Distribution of Target Ownership and the Division of Gains in Successful Takeovers

René M. Stulz¹; Ralph A. Walkling²; Moon H. Song^3,4

¹ National Bureau of Economic Research · ² San Diego State University · ³ Nickel Institute · ⁴ Drexel University

Abstract

This paper presents evidence that the distribution of target ownership is related to the division of the takeover gain between the target and the bidder for a sample of successful tender offers. In the whole sample, the target's gain is negatively related to bidder and institutional ownership. In the sample of multiple-bidder contests, the target's gain increases with managerial ownership and falls with institutional ownership.

DOI

10.2307/2328794

Volume

45

Issue

3

Pages

817

Sources

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