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Fairness Opinions and Capital Markets: Evidence from Germany, Switzerland and Austria. ECMI Research Reports, No. 4, 7 January 2009

Lobe, Sebasian and Schenk, Nils-Christian. (2009) Fairness Opinions and Capital Markets: Evidence from Germany, Switzerland and Austria. ECMI Research Reports, No. 4, 7 January 2009. UNSPECIFIED.

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    Abstract

    This paper provides the first empirical evidence of fairness opinions in Europe. Legal requirements concerning the use of fairness opinions in mergers and acquisitions are significantly different in Germany, Switzerland and Austria. We examine the determinants of fairness opinions for target firms in these various regulatory settings, and moreover, investigate the impact of such opinions on the abnormal returns of target firms. While in Germany and Austria market participants do not deem fairness opinions important, they do create value for shareholders in Switzerland. Because conflicts of interest between the target’s board and bidder are a main determinant of fairness opinions in Switzerland, we conclude that when the target’s management faces such conflict, external expert advice replaces the board’s opinion on the offer.

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    Item Type: Other
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > competition policy
    Countries > Germany
    Countries > Switzerland
    Countries > Austria
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > ECMI Research Reports
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 23 Apr 2009
    Page Range: p. 18
    Last Modified: 15 Feb 2011 18:10
    URI: http://aei.pitt.edu/id/eprint/10751

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