Document Type : Research Article
Authors
1 M.A in Finance and Investment in oil & gas, Petroleum University of Technology, Tehran, Iran
2 Assistant Professor, Department of Accounting, Petroleum University of Technology, Tehran, Iran
3 Management and accounting, Allameh tabatabai'e university
Abstract
Business expansions being engaged in variety of industries in purpose of getting bigger market share, role of corporate governance within the financial decision. One of the important issues in corporate governance is block trading with purpose of control or invest in target firms. If the plan is to acquire majority of shares and decision making, block trade along with paying premium are of great importance.
The purpose of this study is to determine factors affecting on premium of block trading of firms listed in Tehran Stock Exchange or Iran Fara Bourse. Due to the significant impact of companies in refining and petrochemical sectors on whole economy and capital market, this kind of firms should have been considered specially. Multivariate regression and ordinary least squares (OLS) method was used to study the model related to the influential factors on the paid premium of the block trading. Finding of the research shows that financial structure, features of block trading, profitability and efficiency are among factors affecting on premium and also the type of company does not effect on premium.
Keywords
[2] Aktas, Nihat; de Bodt, Eric & Roll, Richard , 2010 , Negotiations under the threat of an auction , Journal of Financial Economics , 98 , 241-255.
[3] Alexandridis, George; Fuller, Kathleen P.; Terhaar, Lars & Travlos, Nickolaos G. , 2013 , Deal size, acquisition premia and shareholder gains , Journal of Corporate Finance , 20 , 1-13.
[4] Allen, Jeffrey W. & Phillips, Gordon M., 2000, Corporate equity ownership,strategic alliances, and product market relationships, The Journal of Finance,6, 2791-2815.
[5] Almeida, Heitor; Campello, Murillo & Weisbach, Michael S. , 2004 , The Cash Flow Sensitivity of Cash, The Journal of Finance , 59 , 1777-1804.
[6] Altman, Edward I., 1968, Financial ratios,discriminant analysis and the prediction of corporate bankruptcy , The Journal of Finance , 23 , 589-609.
[8] Are , Asghar, 2012, Effect of stocks premium on major stock buyers return at Tehran stock exchange. Arrow, Kenneth J., 1975, Vertical Integration and Communication, The Bell Journal of Economics, 6, 173-183.
[9] Asquith, Paul, 1983, Merger bids, uncertainty, and stockholder returns, Journal of Financial Economics, 11, 51-83.
[10] Asquith, Paul; Bruner, Robert F. & Mullins Jr., David W., 1983, The gains to bidding rms from merger, Journal of Financial Economics, 11, 121-139.
[11] Barnes, Paul, 1990, The prediction of takeover targets in the U.K. by means of multiple discriminant analysis, Journal of Business Finance & Accounting, 17,73-84.
[12] Barnes, Paul , 2000 , The identi cation of U.K. takeover targets using published historical cost accounting data Some empirical evidence comparing logit with linear discriminant analysis and raw nancial ratios with industry-relative ratios,
International Review of Financial Analysis , 9 , 147-162.
[13] Bradley, Michael; Desai, Anand & Kim, E.Han, 1983, The rationale behind in-terfirm tender offers: tender offers: Information or synergy? , Journal of Financial Economics,11, 183-206.
[14] Brealey, Richard & Myers, Stewart, 1988, Principles of corporate nance, Journal of Financial Economics, 26, 277-288.
[15] Calcagno, Riccardo & Falconieri, Sonia, 2014, Competition and dynamics of takeover contests, Journal of Corporate Finance, 26, 36-56.
[16] Capen, E.C.; Clapp, R.V. & Campbell, W.M., 1971, Competitive Bidding in High-Risk Situations, Journal of Petroleum Technology, 23, 641-654.
[17] Devos, Erik; Kadapakkam, Palani-Rajan & Krishnamurthy, Srinivasan, 2009, How Do Mergers Create Value? A Comparison of Taxes, Market Power, and Efficiency Improvements as Explanations for Synergies, The review of nancial
study, 22, 1179-1211.
[18] Dodd, Peter & Ruback, Richard, 1977, Tender offers and stockholder returns: An empirical analysis, Journal of Financial Economics, 5, 351-373.
[19] Gahlon, James M. & Stover, Roger D., 1979, Diversi cation, Financial Lever-age and Conglomerate Systematic Risk, Journal of Financial and Quantitative Analysis, 14, 999-1013.
[20] Hertzel, Michael & Smith, Richard L. , 1993 , Market discounts and shareholder gains for placing equity privately , The Journal of nance , 2 , 459-485.
[21] Huang, Yen-Sheng & Walkling, Ralph A., 1987, Target abnormal returns associated with acquisition announcements: Payment, acquisition form, and managerial resistance, Journal of Financial Economics, 19, 329-349.
[22] Klein, Benjamin; Crawford, Robert G. & Alchian, Armen A. , 1978 , Vertical Integration, Appropriable Rents, and the Competitive Contracting Process, The Journal of Law & Economics , 21 , 297-326.
)