Termination fees in a 'bright line' jurisdiction

Chapple, L. J., Christensen, B. and Clarkson, P. M. (2007) Termination fees in a 'bright line' jurisdiction. Accounting and Finance, 47 4: 643-665. doi:10.1111/j.1467-629x.2007.00228.x

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Author Chapple, L. J.
Christensen, B.
Clarkson, P. M.
Title Termination fees in a 'bright line' jurisdiction
Journal name Accounting and Finance   Check publisher's open access policy
ISSN 0810-5391
Publication date 2007-12
Year available 2007
Sub-type Article (original research)
DOI 10.1111/j.1467-629x.2007.00228.x
Volume 47
Issue 4
Start page 643
End page 665
Total pages 23
Editor Faff, R.
Place of publication Melbourne, Vic
Publisher Wiley-Blackwell Publishing Asia
Collection year 2008
Language eng
Subject C1
350101 Financial Accounting
710403 Property and business services
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.
Keyword termination fees
break fees
lock-up devices
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2008 Higher Education Research Data Collection
UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 6 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 6 times in Scopus Article | Citations
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Created: Wed, 27 Feb 2008, 17:08:45 EST by Karen Morgan on behalf of UQ Business School