CROSS SHAREHOLDING AND INITIATIVE EFFECTS
Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 2
Abstract
Cross shareholding can make takeovers more difficult but may be beneficial for shareholders if the manager?s private benefits align with shareholders? benefits. Cross shareholding is more likely to take place as the congruence of interests between managers and shareholders increases, the manager?s private benefits become greater, the manager?s reservation utility is lower, and the shareholders? share of the takeover becomes smaller. Due to the lack of monitoring, corporate value tends to be smaller with cross shareholding.
Authors and Affiliations
Yasuhiro Arikawa| Graduate School of Finance, Accounting and Law, Waseda University; Nihonbashi 1-Chome Building, Nihonbashi, Chuo-ku, Tokyo, Japan, Atsushi Kato*| School of Business, Aoyama Gakuin University, Shibuya, Shibuya-ku, Tokyo, Japan
Keywords
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