HOW MANAGERIAL WEALTH AFFECTS THE TENDER OFFER PROCESS

We present empirical evidence on the relation between changes in manag erial wealth and tender offer characteristics. Changes in managerial w ealth resulting from a tender offer are negatively related to the like lihood of managerial resistance to a tender offer and positively relat ed to the likelihood of tender offer success. We also document that th e abnormal returns to tender offers are lower for hostile than for fri endly offers if we control for the tender offer premium. Finally, we f ind that the top executive gains, whereas outside shareholders do not gain, from management's decision to resist the tender offer.