TY - JOUR
T1 - Raiders or saviors? The evidence on six controversial investors
AU - Holderness, Clifford G.
AU - Sheehan, Dennis P.
N1 - Funding Information:
*We have benefited from the comments of Andrew Christie, Amor Gosfield, Michael Jensen, Stuart Klein, Wayne Mikkelson, Clifford Smith, Lee Wakeman, Jerold Warner, Jerold Zimmerman, and Larry Dann (the referee). We would especially like to thank Harry DeAngelo for his generous assistance throughout our research. Finally, we would like to thank Hesna Genay and Amy Schlenker for research assistance and Michel Vetsuypens for computational assistance. This research has been funded by the Managerial Economics Research Center of the Graduate School of Management, University of Rochester.
PY - 1985/12
Y1 - 1985/12
N2 - Carl Icahn, Irwin Jacobs, Carl Lindner, David Murdock, Victor Posner, and the late Charles Bluhdorn are usually portrayed as corporate 'raiders'. The evidence here, however, shows that between 1977 and 1982 when it was first announced that they had purchased stock in a given firm, stock prices on average increased significantly. The investors' activities in target firms for the two years following the initial stock purchase are likewise inconsistent with 'raiding'. We discuss two hypotheses that are consistent with the evidence: first, these investors improve the management of target firms; second, they are systematically able to identify under-priced stocks.
AB - Carl Icahn, Irwin Jacobs, Carl Lindner, David Murdock, Victor Posner, and the late Charles Bluhdorn are usually portrayed as corporate 'raiders'. The evidence here, however, shows that between 1977 and 1982 when it was first announced that they had purchased stock in a given firm, stock prices on average increased significantly. The investors' activities in target firms for the two years following the initial stock purchase are likewise inconsistent with 'raiding'. We discuss two hypotheses that are consistent with the evidence: first, these investors improve the management of target firms; second, they are systematically able to identify under-priced stocks.
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U2 - 10.1016/0304-405X(85)90026-1
DO - 10.1016/0304-405X(85)90026-1
M3 - Article
AN - SCOPUS:0001658867
SN - 0304-405X
VL - 14
SP - 555
JO - Journal of Financial Economics
JF - Journal of Financial Economics
IS - 4
ER -