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How does equity structure impact M&A decision? A model based on private benefits

  • Zhang Jia*
  • , Liyan Han
  • *Corresponding author for this work
  • Beihang University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper focus on the private benefit of large shareholder's control right within the framework of Agency Theory 2 and construct a model which can illustrate how M&A decision can be impacted by acquirer's equity structure. The model internalizes large shareholder's private benefit as a function of the shareholding ratio and specifies the mechanism through which large shareholder's shareholding ratio and ownership concentration impact the M&A decision. This paper provides theoretical foundation for those empirical literatures which analyze the M&As from the perspective of Agency Theory 2.

Original languageEnglish
Title of host publicationAdvanced Materials and Information Technology Processing, AMITP 2011
Pages742-747
Number of pages6
DOIs
StatePublished - 2011
Event2011 International Conference on Advanced Materials and Information Technology Processing, AMITP 2011 - Guangzhou, China
Duration: 17 Apr 201118 Apr 2011

Publication series

NameAdvanced Materials Research
Volume271-273
ISSN (Print)1022-6680

Conference

Conference2011 International Conference on Advanced Materials and Information Technology Processing, AMITP 2011
Country/TerritoryChina
CityGuangzhou
Period17/04/1118/04/11

Keywords

  • Equity structure
  • M&A
  • Private benefit

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