Evidence on the Deterrence and Wealth Effects of Modern
Antitakeover Measures, 39 J.
We employ a comprehensive measure of corporate governance that encompasses those governance mechanisms that have received the most attention in the academic literature, namely, board and chief executive officer (CEO) characteristics, compensation, insider ownership, transparency, and
antitakeover measures.
307) See Coates, supra note 6, at 291-97, 306-10, 328-36 (providing evidence that pill adoptions do not affect bids, that poison pills do not correlate with other firm traits, and that certain other
antitakeover measures have not been shown to affect bids).
Rights agreements are popular
antitakeover measures, but the price at which the shareholder may purchase additional shares in the case of a takeover is usually set below or close to the market price.
Regan, "Dead End: Delaware's Response to the Recent Innovation in Corporate
Antitakeover Measures, the So-Called 'Dead Hand' Poison Pill, in Carmody v.
to oppose its adoption of
antitakeover measures, reduced shares in five Japanese firms, while increasing equity in two firms.
Whether the topic is executive compensation, majority voting for directors, or
antitakeover measures, the influence of shareholders on corporate policymaking is definitely on the rise.
One of the intermediate standards applies where boards adopt
antitakeover measures.
While the existing literature reports conflicting findings concerning the relationship between the inside/outside director dichotomy and the adoption of
antitakeover measures, consistent with agency theory we propose:
Antitakeover measures, golden parachutes, and target firm shareholder interests.
Both LBOs and LRs are
antitakeover measures in that they can be motivated by the threat of a takeover by outsiders.
Alternatively, Comment and Schwert (1995) state that
antitakeover measures are unlikely to alter a firm's probability of being acquired and are not a significant tool for management to entrench and protect themselves.
