Publication:
Reviving the Market for Corporate Control

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dc.contributor.authorLeechor, Chad
dc.date.accessioned2012-08-13T15:08:23Z
dc.date.available2012-08-13T15:08:23Z
dc.date.issued1999-09
dc.description.abstractChanges in corporate control-through mergers, takeovers, acquisitions, divestitures, and the like-enhance shareholders' value. They allow the businesses to be transferred to the control of new owners who can put business assets to work more efficiently. In most countries, however, the market for corporate control is significantly restricted by anti-takeover laws and business practices used to entrench management, such as poison pills, heavy debt, pyramid schemes, and cross-holdings of equity. The key to overcoming these obstacles is to restructure incentives-by requiring business groups to disclose intercorporate ownership and banks to limit connected lending, by ensuring that bankruptcy law allows effective transfer of control, and by removing regulatory barriers to takeovers. Many studies of mergers, takeovers, acquisitions, and divestitures have confirmed that these control transactions generally maximize shareholders' value (Jensen and Ruback 1983). The gain in value is most visible in target firms' stock prices following announcements of takeover attempts or merger agreements. Even in the most advanced markets, where control transactions are common, stock prices increase 20 to 30 percent on average, depending on the type of transaction (Jarrell, Brickley, and Netter 1988). This gain represents one part of the increased business value that the acquirer is prepared to share with the target firm.en
dc.identifierhttp://documents.worldbank.org/curated/en/1999/09/2531452/reviving-market-corporate-control
dc.identifier.citationViewpoint. -- Note no. 191 (September 1999)
dc.identifier.doi10.1596/11463
dc.identifier.urihttps://hdl.handle.net/10986/11463
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesViewpoint
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCORPORATE CONTROL
dc.subjectMERGERS
dc.subjectTAKEOVERS
dc.subjectDIVESTITURE
dc.subjectSHAREHOLDERS
dc.subjectINDEBTEDNESS
dc.subjectSTOCK PRICES
dc.subjectGOVERNANCE
dc.subjectMONOPOLIES
dc.subjectLOBBYING AUCTIONS
dc.subjectAUDITORS
dc.subjectBANKRUPTCY
dc.subjectBID
dc.subjectBIDDERS
dc.subjectBOARDS OF DIRECTORS
dc.subjectBORROWING
dc.subjectBUYOUT SPECIALISTS
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL GAINS
dc.subjectCOMMERCIAL FIRMS
dc.subjectCOMMON
dc.subjectCONNECTED LENDING
dc.subjectCONNECTED PARTIES
dc.subjectCONTROL IMPEDIMENTS
dc.subjectCONTROL SHARE
dc.subjectCONTROL TRANSACTIONS
dc.subjectCORPORATE CONTROL
dc.subjectCORPORATE FINANCE
dc.subjectCRIMINAL SANCTIONS
dc.subjectDEBT
dc.subjectDEPOSITS
dc.subjectDISCLOSURE
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIES OF SCALE
dc.subjectEMERGING MARKETS
dc.subjectFIXED COSTS
dc.subjectFOREIGN SHAREHOLDERS
dc.subjectLARGE SHAREHOLDERS
dc.subjectLAWS
dc.subjectLEGISLATION
dc.subjectLITIGATION
dc.subjectMERGERS
dc.subjectMONOPOLIES
dc.subjectOIL
dc.subjectPRODUCERS
dc.subjectPROFITABILITY
dc.subjectREORGANIZATION
dc.subjectSECURITIES
dc.subjectSHAREHOLDERS
dc.subjectSTOCK
dc.subjectSTOCK PRICES
dc.subjectTAKEOVER
dc.subjectTRANSPARENCY
dc.subjectWEALTH
dc.titleReviving the Market for Corporate Controlen
dspace.entity.typePublication
okr.crosscuttingsolutionareaFragility, Conflict, and Violence
okr.date.doiregistration2025-04-29T10:19:20.340422Z
okr.doctypePublications & Research::Viewpoint
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/1999/09/2531452/reviving-market-corporate-control
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.guid319871468762370820
okr.identifier.externaldocumentum000090341_20031002112127
okr.identifier.internaldocumentum2531452
okr.identifier.report26843
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/10/02/000090341_20031002112127/Rendered/PDF/268430VP0note0no101910leechor.pdfen
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicBanks and Banking Reform
okr.topicEconomic Theory and Research
okr.topicInternational Terrorism and Counterterrorism
okr.topicEnvironmental Economics and Policies
okr.topicMacroeconomics and Economic Growth
okr.topicEnvironment
okr.topicConflict and Development
okr.unitOff of VP
okr.unitFPD&IFC Chief Econ-WB (FPDVP)
okr.volume1 of 1
relation.isSeriesOfPublication1067ecbf-b217-4376-a77e-64594be2b212
relation.isSeriesOfPublication.latestForDiscovery1067ecbf-b217-4376-a77e-64594be2b212
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