Essays in Corporate Finance / Adrian Aycan Corum.

Format:

Book

Thesis/Dissertation

Author/Creator:

Corum, Adrian Aycan, author.

Contributor:

Levit, Doron, degree supervisor.

Yilmaz, Bilge, 1968- degree supervisor.

University of Pennsylvania. Finance, degree granting institution.

Language:

English

Subjects (All):

Finance.

Economics.

Finance--Penn dissertations.

Penn dissertations--Finance.

Local Subjects:

Finance.

Economics.

Finance--Penn dissertations.

Penn dissertations--Finance.

Genre:

Academic theses.

Physical Description:

1 online resource (187 pages)

Contained In:

Dissertation Abstracts International 80-02A(E).

Place of Publication:

[Philadelphia, Pennsylvania] : University of Pennsylvania ; Ann Arbor : ProQuest Dissertations & Theses, 2018.

Language Note:

English

System Details:

Mode of access: World Wide Web.

text file

Summary:

In the first chapter, "Activist Settlements'', I provide a theoretical framework to study the economics of settlements between activist investors and boards. The activist can demand that his proposal be implemented right away ("action settlement") or demand a number of board seats ("board settlement"), which also gives the activist access to better information. I find that the incumbent's rejection of board settlement reflects more of its private information than the rejection of action settlement does. Therefore, demanding board settlement increases the activist's credibility to run a proxy fight upon rejection and leads to a higher likelihood of reaching a settlement in the first place. I draw several implications and empirical predictions of my model, e.g., related to shareholder value, costs of proxy fight, and activist expertise.

The second chapter, "Corporate Control Activism'', co-authored with Doron Levit, studies the role of activist investors in the M&A market. Our theory proposes that activist investors have an inherent advantage relative to bidders in pressuring entrenched incumbents to sell. As counterparties to the acquisition, bidders have a fundamental conflict of interests with target shareholders from which activist investors are immune. Therefore, unlike activists, the ability of bidders to win proxy fights is very limited. This result is consistent with the large number of activist campaigns that have resulted with the target's sale to a third party and the evidence that most proxy fights are launched by activists, not by bidders.

Notes:

Source: Dissertation Abstracts International, Volume: 80-02(E), Section: A.

Advisors: Doron Levit; Bilge Yilmaz; Committee members: Itay Goldstein; Richard Kihlstrom.

Department: Finance.

Ph.D. University of Pennsylvania 2018.

Local Notes:

School code: 0175

ISBN:

9780438421882

Access Restriction:

Restricted for use by site license.