Abstract
We investigate the importance of ownership structure when assessing the impacts of antitakeover provisions (ATPs) on debtholder wealth. Using a regression discontinuity design, we find that loan spreads significantly decrease (increase) for family (nonfamily) firms after the passage of close-call shareholder proposals to remove ATPs. The results are similar when bond announcement returns are used as an alternative measure of debtholder wealth. The decrease (increase) in loan spreads is more evident when family (nonfamily) firms have lower (higher) asset substitution concerns, when they face more (less) intense product market competition, and when their top ten institutions hold smaller (larger) ownership.
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