Work

Which antitakeover provisions deter takeovers?

Year: 2022

Type: article

Abstract: Antitakeover provisions play a central role in corporate governance research. But there is little agreement over which, if any, provisions actually affect takeover likelihoods. In tests that account for the endogenous use of antitakeover provisions, we find that at most 11 of the 24 G-index provisions are negatively related to takeover likelihood. Various indices used in the literature measure takeover deterrence to the extent they include this subset of provisions. In more stringent tests, only four provisions are consistently and negatively related to takeover likelihood throughout the 1995-2020 period, while one provision (golden parachutes) is positively related to takeover likelihood.

Source: Journal of Corporate Finance

DOI: 10.1016/j.jcorpfin.2022.102218

Authors: Jonathan M. Karpoff, Robert Schonlau, Eric Wehrly

Institutions: University of Washington, Colorado State University, Western Washington University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W4280587478