Board Structure, Antitakover Provisions and Stockholder Wealth
Strategic Management Journal, Vol. 17, Issue 3 (1996).
Posted: 25 Nov 1996
This paper's regression analyses from a sample of 261 firms that adopted 486 antitakeover provisions (supermajority, classified boards, fair-price, reduction in cumulative voting, anti-greenmail and poision pills) in the 1984-1988 period indicate that the negative market reactions to antitakeover provisions vary depending on firm's board structures. This paper's empirical evidence indicates that while separating the positions of CEO and chairperson of the board reduces the negative effect, increased outsider representation increases negative market reactions.
JEL Classification: G12, G34
Suggested Citation: Suggested Citation