QUT ePrints

Termination fees in a ‘bright line’ jurisdiction

Chapple, Larelle June, Christensen, Blake , & Clarkson, Peter (2007) Termination fees in a ‘bright line’ jurisdiction. Accounting and Finance, 47(4), pp. 643-665.

View at publisher

Abstract

We seek to statistically inform the debate regarding the Australian Takeovers Panel’s ‘bright line’ policy towards break fees. Based on 313 takeovers from 2002 to 2006, 85 involving break fees, we find post-bid competition to be unrelated to break fee usage and inversely related to bid success. We also find that break fee usage has a detrimental effect on shareholder wealth as measured by both the final bid premium and abnormal returns. Therefore, although break fees appear to be neither anticompetitive nor coercive within the Australian context, they do appear to have had a deleterious effect on shareholder wealth.

Impact and interest:

3 citations in Scopus
Search Google Scholar™
2 citations in Web of Science®

Citation countsare sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 49310
Item Type: Journal Article
Keywords: Termination fees, Break fees, Lock-up devices, Takeovers
DOI: 10.1111/j.1467-629X.2007.00228.x
ISSN: 0810-5391
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Deposited On: 23 Mar 2012 16:59
Last Modified: 23 Mar 2012 16:59

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page