This thesis first introduces the concept of Liquidation after Buy (LAB), then revisit some corporate issues under the LAB, which are paid little attention in the literature. Those issues include the efficiency of transfer of controls under different take-over rules such as the Market Rule and the Equal Opportunity Rule, the safe level of debt, the protection of the minority shareholders and so on. We also give an explanation why debtholders are rarely given voting rights before a firm's default. The optimal ownership structure under LAB is also discussed.
Permanent URL for this record: https://lbezone.hkust.edu.hk/bib/b681090