TitleShareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused?
Publication TypeJournal Articles
Year of Publication2017
AuthorsKalodimos, J, Lundberg, C
JournalFinance Research Letters
Date Published2017
KeywordsFinance, MBA
Abstract

Appraisal rights grant dissenting shareholders in an acquisition the right to petition the court to determine the value of their shares. These rights can protect shareholders from acquisitions below fundamental value or can be abused by opportunistic investors. We examine the use of appraisal rights and find the evidence is most consistent with appraisal rights functioning as recourse when the target firm is sold below fundamental value.

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