Drees Motives for and Consequences of Minority Equity Purchases

2010
ISBN: 978-3-8349-8886-7
Verlag: Betriebswirtschaftlicher Verlag Gabler
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Deutsch, Band 76, 109 Seiten, eBook

Reihe: ebs-Forschung, Schriftenreihe der EUROPEAN BUSINESS SCHOOL Schloß Reichartshausen

Friedel Drees examines the capital markets' reaction to the announcements of minority equity purchases in Europe and the U.S. and identifies the potential sources of value creation. He shows that company-specific characteristics can have a significant effect on shareholder value.

Dr. Friedel Drees earned his doctoral degree from the European Business School Oestrich-Winkel under the supervision of Prof. Dr. Dirk Schiereck. He works as an investment professional for a private equity fund.

Zielgruppe

Research

Autoren/Hrsg.

Drees, Friedel

Inhaltsverzeichnis

1;Foreword;6
2;Acknowledgements;7
3;Table of Contents;8
4;List of Tables & Figures;10
5;List of Abbreviations;12
6;List of Symbols;13
7;1 Introduction;14
7.1;First research question:;15
7.2;Second research question:;17
7.3;Third research question:;18
8;2 New Outside Blockholders, Performance, and Governance in Germany;21
8.1;2.1 Introduction;21
8.2;2.2 Literature Review;23
8.2.1;2.2.1 General Considerations with Regard to the Potential Wealth Effects of Block Purchases;23
8.2.2;2.2.2 Empirical Evidence on The Effects of Block Purchases in Germany;25
8.3;2.3 Data and Methodology;26
8.3.1;2.3.1 Sample Selection;26
8.3.2;2.3.2 Block Characteristics;29
8.3.3;2.3.3 Target Characteristics;32
8.3.4;2.3.4 Method of Measuring Abnormal Returns;34
8.4;2.4 Results;34
8.4.1;2.4.1 Announcement Effects;34
8.4.2;2.4.2 Determinants of Abnormal Returns;37
8.5;2.5 Conclusion and Outlook;40
9;3 Equity Ownership, Agency Problems and Shareholder Wealth: Understanding the Unique Role of Corporate Block Owners;42
9.1;3.1 Introduction;42
9.2;3.2 Literature Review;45
9.2.1;3.2.1 Theoretical Benefits of Corporate Block Equity Ownership;45
9.2.2;3.2.2 Empirical Evidence on the Wealth Effects of Corporate Minority Block Purchases;47
9.3;3.3 Data and Methodology;49
9.3.1;3.3.1 Corporate Block Purchases;49
9.3.2;3.3.2 Factors that Explain the Value Creation from Corporate Block Equity Purchases;53
9.3.2.1;3.3.2.1 Industry Characteristics;55
9.3.2.2;3.3.2.2 Product Market Relationship Related Characteristics;57
9.3.2.3;3.3.2.3 Transaction Characteristics;58
9.3.2.4;3.3.2.4 Target Financial Characteristics;60
9.3.3;3.3.3 Method of Measuring Abnormal Returns;63
9.4;3.4 Results;64
9.4.1;3.4.1 Univariate Analysis;64
9.4.2;3.4.2 Cross-Sectional Regression Analysis;70
9.5;3.5 Conclusions;76
10;4 Minority Equity Ownership and Value Creation: The Role of Corporate Relatedness;78
10.1;4.1 Introduction;78
10.2;4.2 Hypotheses and Related Literature;81
10.3;4.3 Data and Methodology;83
10.3.1;4.3.1 Corporate Block Purchases;83
10.3.2;4.3.2 Measuring Corporate Relatedness;87
10.3.2.1;4.3.2.1 Benchmark Input-Output Accounts;87
10.3.2.2;4.3.2.2 Method of Measuring Vertical Relatedness;88
10.3.2.3;4.3.2.3 Method of Measuring Complementarity;91
10.3.3;4.3.3 Method of Measuring Abnormal Returns;93
10.4;4.4 Results;93
10.4.1;4.4.1 Univariate Analysis;93
10.4.2;4.4.2 Cross-Sectional Regression Analysis;97
10.4.3;4.4.3 The Effect of Secondary Segments;102
10.5;4.5 Conclusion;107
11;5 Concluding Remarks;109
12;References;112

New Outside Blockholders, Performance, and Governance in Germany.- Equity Ownership, Agency Problems and Shareholder Wealth: Understanding the Unique Role of Corporate Block Owners.- Minority Equity Ownership and Value Creation: The Role of Corporate Relatedness.- Concluding Remarks.

Über Autor(innen)

Dr. Friedel Drees earned his doctoral degree from the European Business School Oestrich-Winkel under the supervision of Prof. Dr. Dirk Schiereck. He works as an investment professional for a private equity fund.