RISK- RETURN ANALYSIS
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Date
2017-11
Authors
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Volume Title
Publisher
The British University in Dubai (BUiD)
Abstract
The study presents the influence of defensive investment strategies on shareholder earnings and focuses on the use of anti-takeover approaches and their effect on the stocks of involved companies. The purposive sampling method is adopted, and the paper evaluates the case of the Microsoft’s attempted acquisition of Yahoo! of 2008, the acquisition of Akbastau and Zarechnoye Uranium Mines by Uranium Inc. of 2010, and the takeover of Andean by Goldcorp of 2010. The findings prove that the use of the strategies does expose owners to risk because they do not necessarily create value for shareholders. Results show that the Yahoo! Company’s value fell following its adoption of anti-takeover measures. Lundin Mining suffered a similar fate as its share price dropped when the company rejected Equinox Minerals’ offer.
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Keywords
risk-return, investment strategies, shareholders, Yahoo!