Determinants of corporate anti-takeover provisions
AbstractIn this paper I study empirically the industry and firm characteristics that determine the level of corporate antitakeover protection. I find that the level of antitakeover protection is negatively associated with the level of firm-specific organizational capital and with stock market volatility. On the other hand, firms that allow a larger degree of antitakeover protection to their managers do indeed invest more in long term projects and operate in more concentrated industries. All these findings are consistent with a managerial entrenchment interpretation of corporate antitakeover provisions.
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Bibliographic InfoPaper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp04-28.
Length: 28 pages
Date of creation: Oct 2004
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Takeover defenses; Organizational capital; Product market competition; Managerial compensation;
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