Preliminary communication
EMPIRICAL RESEARCH AB OUT THE MARKET FOR CORPORATE CONTROL IN REPUBLIC OF CROATIA
Davor Filipović
; Faculty of Economics and Business Zagreb, Croatia
Marijan Cingula
; Faculty of Economics and Business Zagreb, Croatia
Darko Tipurić
orcid.org/0000-0001-8785-0179
; Faculty of Economics and Business Zagreb, Croatia
Abstract
The market for corporate control can be viewed as an exogenous organizational variable that puts pressure on managers to behave and make investment decisions that are coherent with the interests of shareholders. With the respect to the fact that there is a lack of researches in the Republic of Croatia regarding the impact of the market for corporate control on the performance of the target companies and taking into consideration that poor effectiveness of the management for a longer period of time results in poor company performance, this paper will test the hypothesis the hypothesis according to which companies that have a below average profitability in its industry, over a longer period of time, are more likely to become takeover targets as compared to other companies in the industry. This paper also examines the impact of the market for corporate control on the performance of target companies after the takeover.
Keywords
market for corporate control; takeover; empirical research; Republic of Croatia
Hrčak ID:
75559
URI
Publication date:
30.12.2011.
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