Efficiency in Corporate Takeovers

Corporate takeover is a very important economic activity that generates profound consequences on many classes of market participants. The great financing needs and transaction costs directly change the wealth of both shareholders and creditors. The corporate restructuring induced by the takeover results in a significant impact on the welfare of management, employees, and customers. The reshaped industrial map due to the takeover further influences the competition strategies of other firms. Moreover, the changes in the taxable revenues when the takeover happens across the industry can also affect the tax income to the government. The paramount impact on corporations and the economy highlights the importance of studying the efficiency in corporate takeovers. This dissertation contributes to the discussion on takeover efficiency by exploring three key questions.