NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Julian Franks

London Business School
Finance Department
Regent's Park, London NW1 4SA
UNITED KINGDOM

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

March 2010Returns to Shareholder Activism: Evidence from a Clinical Study of the Hermes UK Focus Fund
with Marco Becht, Colin Mayer, Stefano Rossi
in Corporate Governance, Michael Weisbach, editor
November 2005Spending Less Time with the Family: The Decline of Family Ownership in the United Kingdom
with Colin Mayer, Stefano Rossi
in A History of Corporate Governance around the World: Family Business Groups to Professional Managers, Randall K. Morck, editor
July 2004Spending Less Time with the Family: The Decline of Family Ownership in the UK
with Colin Mayer, Stefano Rossi: w10628
Family ownership was rapidly diluted in the twentieth century in Britain. The main cause was equity issued in the process of making acquisitions. In the first half of the century, it occurred in the absence of minority investor protection and relied on directors of target firms protecting the interests of shareholders. Families were able to retain control by occupying a disproportionate number of seats on the boards of firms. However, in the absence of large stakes, the rise of hostile takeovers and institutional shareholders made it increasingly difficult for families to maintain control without challenge. Potential targets attempted to protect themselves through dual class shares and strategic share blocks but these were dismantled in response to opposition by institutional shareholders ...

Published: Julian Franks & Colin Mayer & Stefano Rossi, 2005. "Spending Less Time with the Family: The Decline of Family Ownership in the United Kingdom," NBER Chapters, in: A History of Corporate Governance around the World: Family Business Groups to Professional Managers, pages 581-612 National Bureau of Economic Research, Inc.

December 1987Means of Payment in Takeovers: Results for the U.K. and U.S.
with Robert S. Harris, Colin Mayer: w2456
This paper examines means of payment in over 2,500 acquisitions in the UK and US over the period 1955 to 1985. Data on financing proportions, bid premia and postmerger performance are used to test the validity of tax and information hypotheses. It is difficult to explain many of the results in terms of tax effects. Capital gains tax does not appear to be a primary determinant of financing patterns in the UK in a period in which there were substantial variations in the tax rate. As well the tax motivated "trapped equity" model is inconsistent with several observations on financing patterns. In both countries much larger acquiree bid premia are associated with cash than equity bids, consistent with information models suggesting that high valuing bidders make cash offers and low valuing bidde...
 
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