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Full-Text Articles in Law
Golden Parachutes, Severance, And Firm Value, Andrew C.W. Lund, Robert Schonlau
Golden Parachutes, Severance, And Firm Value, Andrew C.W. Lund, Robert Schonlau
Florida Law Review
Golden parachutes (GPs) are now standard contract provisions for public company CEOs. While they have become ubiquitous, they have also been severely criticized for harming shareholder value. As a result, GPs are subjected to intense shareholder activism and are uniquely penalized under both tax and securities law. Recent empirical work suggests that they may indeed be associated with poor firm performance, validating the steps taken to reduce or eliminate GPs.
This Article offers reasons to rethink the consensus that has developed around GPs. First, this Article highlights a substantial endogeneity problem, which earlier studies linking GPs and firm values fail …
Shareholder Protection Across Time, Brian R. Cheffins, Steven A. Bank, Harwell Wells
Shareholder Protection Across Time, Brian R. Cheffins, Steven A. Bank, Harwell Wells
Florida Law Review
This Article offers the first systematic attempt to measure the development of shareholder protection in the United States across time. Using three indices developed to measure the relative strength of shareholder protection across nations, this Article evaluates numerically the protections corporate and securities law have offered shareholders from the beginning of the 20th century to the present day. It accomplishes this by tracking the rights accorded to shareholders across time under three important sources of corporate law: Delaware and Illinois and the Model Business Corporation Act.
This Article’s novel study yields novel results. First, we find that the protections afforded …