Having more potential raiders weakens the takeover threat

OnderzoeksoutputAcademic

348 Downloads (Pure)

Samenvatting

We argue in this paper that a more active market for corporate control may weaken the takeover threat. We show that an increase in the number of potential raiders tends to decrease the probability of a takeover. This in turn weakens managerial incentives. The lower managerial effort level that results in equilibrium negatively affects the ex ante value of the firm.
Originele taal-2English
Plaats van productieGroningen
UitgeverUniversity of Groningen
Aantal pagina's26
StatusPublished - 2003

Vingerafdruk

Duik in de onderzoeksthema's van 'Having more potential raiders weakens the takeover threat'. Samen vormen ze een unieke vingerafdruk.

Citeer dit