| Abstract: | This paper examines management-induced antitakeover activity which occurred in Australia in the late 1980s. The particular event studied is unique in Australia and requires shareholder approval to amend a company's Articles of Association to incorporate an antitakeover clause. The results show that there are strong positive wealth effects surrounding this management-initiated antitakeover activity, and that there is some evidence of a positive relationship between these abnormal returns and institutional holdings.Scott Armstrong is Investment Analyst, Bankers Trust Australia Limited, Sydney, Australia. Helen Lange is Senior Lecturer, Graduate School of Management, Macquarie University, Sydney, Australia. Li-Anne Woo is Lecturer, School of Banking and Finance, University of New South Wales, Sydney, Australia. We gratefully appreciate the comments on earlier drafts from Tim Brailsford, Malcolm Harris, Gary Twite, Greg Clinch, Julianne Wright, Roger Bowden, Robert Czernkowski, participants at the Inaugural International Conference on Financial Management, Suffolk University, Boston (November 1992), and participants at the Third International Conference on Asian-Pacific Financial Markets, Singapore (September 1993). This research benefited from the financial support provided by a Special Research Grant from the Faculty of Commerce and Economics, University of New South Wales. |
