The Decline of Takeovers and Disciplinary Managerial Turnover

Posted: 20 Jul 1998

See all articles by Wayne H. Mikkelson

Wayne H. Mikkelson

University of Oregon - Department of Finance

M. Megan Partch

University of Oregon - Department of Finance

Date Written: Undated

Abstract

Among U.S. industrial companies that are not acquired we compare top management turnover between an active takeover period (1984-1988) and a less active period (1989-1993). For firms in the lowest quartile of performance, as measured by operating income scaled by assets, 33% subsequently experienced complete turnover of the holders of the top three offices in the active takeover period and 17% experienced complete turnover in the less active takeover period. A regression analysis that controls for various possible determinants of management turnover shows that turnover and performance are related only in the active takeover period. We conclude that managerial discipline is linked to takeover activity in the economy.

JEL Classification: J53

Suggested Citation

Mikkelson, Wayne H. and Partch, M. Megan, The Decline of Takeovers and Disciplinary Managerial Turnover (Undated). Available at SSRN: https://ssrn.com/abstract=6961

Wayne H. Mikkelson (Contact Author)

University of Oregon - Department of Finance ( email )

Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States

M. Megan Partch

University of Oregon - Department of Finance ( email )

Lundquist College of Business
1208 University of Oregon
Eugene, OR 97403
United States

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