Open AccessProxy Contests: The Evidence
Author(s) -
Graham Hancock
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v6i4.6270
Subject(s) - contest , proxy (statistics) , equity (law) , voting , economics , corporation , financial economics , actuarial science , empirical evidence , econometrics , finance , statistics , political science , mathematics , law , philosophy , epistemology , politics
This paper reviews the theoretical and empirical contributions to the proxy contest literature. Research to date suggest that: 1. The use of the proxy contest as a method of taking over a corporation depends on its cost relative to the tender offer; 2. The security voting structure and debt/equity ratio influence the outcome of the proxy contest; and 3. The value of a proxy contest can be estimated using the principles of option pricing theory.