The effects of takeover threats on shareholders and firm value
نویسندگان
چکیده
We study the role of takeover threats as a corporate control mechanism using [Aghion, P., Tirole, J., 1997. Formal and real authority in organizations. Journal of Political Economy 105, 1–29] model of formal and real authority. Shareholders do not monitor the manager’s actions since ownership is widely dispersed. A corporate raider may monitor and step in if a profit opportunity exists. In our model, a takeover threat decreases managerial effort and may increase the value of the shares. We also look at the extent of anti-takeover defenses favored by individual shareholders and institutional investors. © 2005 Elsevier B.V. All rights reserved. JEL classification: G34; G35; G38
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تاریخ انتشار 2000