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Does the Free-rider Problem Occur in Corporate Takeovers?

April 26, 2017corporate occur problem takeovers

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Does the Free-rider Problem Occur in Corporate Takeovers?

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S. Hirota, T. Saijo, Y. Hamaguchi and T. Kawagoe ISER Discussion Paper from Institute of Social and Economic Research, Osaka University Abstract: We explore experimentally whether the free-rider problem occurs in corporate takeovers. While Grossman and Hart’s (1980) classical proposition states that due to the free-rider problem takeovers never succeed, we observe a considerable number of successful takeovers in real capital markets. To solve this paradox, we conducted an experimental study by constructing simple laboratory markets of atomistic shareholders. Keywords: CAPITAL; MARKET; SHAREHOLDERS (search for similar items in EconPapers) JEL-codes: H3 G1 (search for similar items in EconPapers) Date: 2000 Track citations by RSS feed Downloads: (external link) http://www.iser.osaka-u.ac.jp/library/dp/2000/dp0512.pdf Related works: This item may be available elsewhere in EconPapers: Search for items with the same title.