منابع مشابه
Free Cash Flow and Takeover Threats: An Experimental Study∗
A classic theory of corporate governance holds that, when cash flow is high and investment opportunities scarce, takeover threats reduce managerial self dealing and encourage dividend payment to owners. We conduct laboratory experiments studying the effect of cash flow on self dealing and the effect of takeover threats on both agency problems and the optimality of management of cash flows. We f...
متن کاملTakeover Threats, Pricing Strategies and the Dynamics of Information Flows
This paper analyzes the impact of a takeover threat on information flows (or communication) within or across firms. We consider a long-term relationship between a firm and a privately informed trading partner, say a buyer. Both parties bargain over a price in each period and a takeover may take place. When takeovers are ruled out, having high bargaining power increases the firm’s likelihood to ...
متن کاملThe effects of takeover threats on shareholders and firm value
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 ...
متن کاملWith Greater Power Comes Greater Responsibility? Takeover Protection and Corporate Attention to Stakeholders
Using takeover protection as an indicator of corporate governance, this study examines how an exogenous shift in power from shareholders to managers affects corporate attention to nonshareholding stakeholders. Two competing hypotheses are entertained. The shareholder view predicts that stronger takeover protection will lead to a decrease in corporate attention to shareholders and non-shareholdi...
متن کاملInjunctions, Hold-Up, and Patent Royalties
This paper studies royalty negotiations between a patent holder and a downstream firm selling a product which is more valuable if it includes a feature covered by the patent. Royalties are negotiated in the shadow of patent litigation, which will determine whether or not the patent is valid and infringed. If the two firms negotiate after the downstream firm has already designed its product to i...
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ژورنال
عنوان ژورنال: Journal of Financial Intermediation
سال: 2005
ISSN: 1042-9573
DOI: 10.1016/j.jfi.2004.08.004