Title: Information disclosure discounts in takeover auctions
Authors: Dong-Hyuk Kim - University of Queensland (Australia) [presenting]
Abstract: Motivated by the concerns on the confidential information disclosure and the practice of bidder regulation in takeover auctions, we develop a structural auction model that approximates the takeover procedure to study the effect of confidential information disclosure on bidders' behavior and seller's revenue. We first derive a bidders' optimal bidding strategy and provide a condition for the existence of a symmetric monotone BNE. Then, we discuss the identification of the model with and without unobserved target heterogeneity. Finally, we estimate the model with the data on takeover auctions of U.S. public companies.