Takeover defenses and wealth effects on securityholders: the case of poison pill adoptions

Article Abstract:

Analysis of the adoption of anti-takeover policies, known as poison pill adoptions, by firms shows that bondholders suffer wealth erosion effects as a result of the announcement of such policies while stockholders are generally unaffected. The negative wealth effects become more intense as the firm's leverage increases after implementation of these policies, which are generally undertaken by management as a protective measure.

Antimerger Strategy, Research, Economic aspects, Stockholders, Corporate anti-takeover measures, Antitakeover strategies, Bondholders

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Does insider trading have information content for the bond market?

Article Abstract:

The information content of registered corporate insiders in stock trading for the bond market is proven to be significant. Positive convertible and straight bond price reactions were significantly observed upon the publication of insider buy transactions. There were significantly negative reactions for insider sell trades. The response of the stock market to the publication of the Insider Trading Spotlight was also observed.

Analysis, Economics, Insider trading in securities, Insider trading (Securities), Information theory, Credit market, Credit markets, Information theory in economics

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