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Studies from University of Wyoming Describe New Findings in Corporate Finance
July 16th, 2011
According to the authors of a study from Laramie, United States, "This study provides large sample evidence on the effects of antitakeover provisions (ATPs) on takeover probability and premia in modern takeover contests. Despite the fact that hostile bids are uncommon during the 1990s-2000s, some ATPs have strong but opposing effects on takeover outcomes."
"Consistent with recent theory, the staggered board-poison pill combination is the strongest antitakeover mechanism. Takeover compensation arrangements reduce managerial resistance to takeovers, and many commonly used ATPs are irrelevant in modern takeover battles. Furthermore, compensation plans are associated with...
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Source: Investment Weekly News (2011-07-16)