School of Economics and Management

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PhD Defense Ms. C. Vansteenkiste, MSc

Title: Essays on Corporate Takeovers
Supervisor: Prof. L.D.R. RenneboogHeijden
Co-supervisor: Dr. A. Manconi

This thesis consists of four chapters on corporate takeovers and mergers and acquisitions (M&As).

The first chapter compiles the evidence on M&A success or failure to identify what variables determine the success of a takeover in terms of long-run shareholder returns and firm performance.

The second chapter investigates how cross-country differences in creditor protection affect bond performance around cross-border deal announcements. It shows that bond returns are highly sensitive to the strength and enforcement of creditor protection, as bondholders of bidding firms respond more positively to deals where the target is located in a country with stronger creditor rights or more efficient claims enforcement through courts.

The third chapter considers how an acquirer’s investment in its relations with employees affects the value creation process in domestic and cross-border M&As. It shows that whereas an acquirer’s investment in employee relations is positively related to shareholder value and firm performance when acquiring domestically, this effect is reversed when acquiring a foreign target. These results are mainly driven by the provision of monetary incentives such as a bonus plan or health insurance benefits, but the negative effect in cross-border deals is reduced when the acquirer has acquisition experience in the target’s country, or when the social security laws in the target’s county are relatively weak.

The last chapter investigates how acquiring a minority stake in a target firm before committing to a majority stake affects the takeover process in terms of bid premiums, shareholder returns, and post-deal performance. Based on a global sample and a US-focused sample, it finds that two-stage acquisitions are less affected by information asymmetries and that they mitigate pre-emptive overbidding by deterring rival firms from making competing offers.

Cara Vansteenkiste (Gent, 1991) received a B.Sc. in Business Economics from the University of Leuven in 2011 and a M.Sc. in Business Economics from the University of Leuven in 2013. She obtained a Research M.Sc. in Business at Tilburg University in 2014, and joined the Department of Finance as a Ph.D. candidate in the same year. During her doctoral studies, she has been a visiting researcher at Harvard University and she has presented her work at numerous conferences and seminars, including Massachusetts Institute of Technology (MIT), Harvard University, Boston University, and Copenhagen Business School. In August 2018, she will join the University of New South Wales in Sydney, Australia.


Location: Cobbenhagen building, Auditorium (access via Koopmans building)


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When: 18 June 2018 10:00

Where: Route description Tilburg University campus