Shareholder voting in mergers and acquisitions: evidence from the UK

Tokbolat, Yerzhan; Thompson, Steve; Le, Hang

Abstract

This paper examines the determinants and consequences of shareholder voting on mergers and acquisitions using a sample of resolutions approved by shareholders of UK publicly listed firms from 1997 to 2015. We find that dissent on M&A resolutions is negatively related to bidder announcement returns and positively related to shareholders’ general dissatisfaction towards the management. Shareholder dissent is an important predictor of the announcement returns of subsequent M&A deals. We also report an increase in shareholder dissent after the 2007–2008 financial crisis.

Citation

Tokbolat, Y., Thompson, S., & Le, H. (2019). Shareholder voting in mergers and acquisitions: evidence from the UK. European Journal of Finance, 25(9), 815-834. https://doi.org/10.1080/1351847X.2018.1552602

• Journal Article Type: Article
• Acceptance Date: Nov 21, 2018
• Online Publication Date: Nov 30, 2018
• Publication Date: Jun 13, 2019
• Deposit Date: Jan 14, 2019
• Publicly Available Date: May 31, 2020
• Journal: The European Journal of Finance
• Print ISSN: 1351-847X
• Electronic ISSN: 1466-4364
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 25
• Issue: 9
• Pages: 815-834
• DOI: https://doi.org/10.1080/1351847X.2018.1552602
• Keywords: Economics, Econometrics and Finance (miscellaneous)
• Public URL: https://nottingham-repository.worktribe.com/output/1468595
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/1351847X.2018.1552602
• Additional Information: Peer Review Statement: The publishing and review policy for this title is described in its Aims & Scope.; Aim & Scope: http://www.tandfonline.com/action/journalInformation?show=aimsScope&journalCode=rejf20
• Contract Date: Jan 14, 2019