Work

Anchoring in Takeovers Under Mandatory Bid Rule: Evidence From an Emerging Market

Year: 2025

Type: article

Abstract: ABSTRACT This article documents the existence of an anchoring bias in the pricing and acceptance of takeover bids in a blockholder regime where the mandatory bid rule applies. Our analysis, performed on the Romanian market for corporate control, shows that the 52‐week high price of the target and the pricing of direct privatisations conducted by the government are strong predictors of both bid premium and outcome. The tender decision depends also on the scope of expropriation perceived by minority shareholders. Our results suggest that stronger capital market discipline is also important for insuring an effective protection of minority shareholders.

Source: Economics of Transition and Institutional Change

DOI: 10.1111/ecot.12451

Authors: Adrian Pop, Diana Pop

Institutions: Université d'Angers, Laboratoire d'Economie et de Management de Nantes Atlantique, Nantes Université

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,010