Shareholder Primacy and Stakeholders' Interests in the Aftermath of a Takeover: A Review of Empirical Evidence

Abstract

Since the takeover of Cadbury Plc in 2010, there has been increased academic attention on investor short-termism during takeovers and whether the continued imposition of the board neutrality rule has made it easy to acquire UK companies. This paper contributes to this growing body of research by examining existing empirical studies to determine whether concerns over short-termism and the continued imposition of the board neutrality rule are justified.

Keywords: Takeovers, Employment, Board Neutrality Rule, Takeover Code 2006, Cadbury, Kraft, Rule 21