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Record W2474554666 · doi:10.5430/ijfr.v7n4p66

Management Control and Takeover Premiums

2016· article· en· W2474554666 on OpenAlexaffvenue
Trevor W. Chamberlain, Maxime Fabre

Bibliographic record

VenueInternational Journal of Financial Research · 2016
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicCorporate Finance and Governance
Canadian institutionsMcMaster University
Fundersnot available
KeywordsControl (management)Corporate governanceBusinessSample (material)Management control systemNegotiationControl sampleQuality (philosophy)AccountingBalanced scorecardValue (mathematics)FinanceEconomicsMarketingStatistics

Abstract

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This study examines the relationships between the management control strength of target and acquiring firms, and takeover premiums. It uses a scorecard system, which aggregates the scores of twelve variables reflecting corporate governance quality and ownership structure characteristics, to define management control strength. Using descriptive statistics and regression analysis, a sample of eighty-one North American publicly traded companies that were in involved in M&A transactions between 2010 and 2013 is examined. Acquirers were found to have paid significantly higher premiums when at least half of the directors sitting on target boards held multiple directorships. Additionally, when at least half of the directors sitting on acquirers’ boards held multiple directorships, acquirers paid significantly lower premiums. The study also found that when an acquirer’s management control is strong and a target’s management control is weak, the size of the premium is significantly lower than the sample average. This could be explained by the acquirer’s greater ability to negotiate deal premiums when its management control is strong and by a lower perceived value of the target firm when target management control is weak. When a target management control is strong and acquirer management control is weak, and when both target and acquirer’s management control is either strong or weak, the premiums paid are not significantly different from the sample mean. These results provide the first step towards developing an investment screening tool for companies involved in M&A transactions.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.005
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.004
Threshold uncertainty score0.014

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0010.005
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.001
Science and technology studies0.0000.000
Scholarly communication0.0010.001
Open science0.0000.001
Research integrity0.0000.001
Insufficient payload (model declined to judge)0.0040.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.033
GPT teacher head0.306
Teacher spread0.273 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2016
Admission routes2
Has abstractyes

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