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Governance And Corporate Control: Compliments Or Substitutes, Atreya Chakraborty
Governance And Corporate Control: Compliments Or Substitutes, Atreya Chakraborty
Atreya Chakraborty
In this paper we test for the motives for adopting golden parachutes and Anti Takeover Amendments (ATAs). Firms that exhibited financial characteristics that were associated with a greater probability of hostile raids were also more likely to adopt golden parachutes or ATAs. We also find evidence to support the hypothesis that the adoption of golden parachutes and poison pills may in fact be complement each other.
The Effects Of Uncertainty And Corporate Governance On Firms’ Demand For Liquidity, Atreya Chakraborty
The Effects Of Uncertainty And Corporate Governance On Firms’ Demand For Liquidity, Atreya Chakraborty
Atreya Chakraborty
We find that US corporations’ demand for liquidity is sensitive to two important factors: uncertainty facing the firm and the quality of corporate governance. Following prior research, we find that both factors have important influences on firms’ cash holdings. Our results also indicate that the interactions between uncertainty and governance measures are significant. From a policy perspective, these new findings indicate that both governance and the nature of uncertainty may play an important role in managing liquidity risks. Policy recommendations may not only be limited to changes in financial policy but may also include changes in corporate governance.