Academic Journal
Shareholder Rights in Mergers and Acquisitions: Are Appraisal Rights Being Abused?
2017 Finance Research Letters
Journal Details
Finance Research Letters, 2017
Keywords
Finance
Journal Article, Academic Journal
Overview
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.