Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Business and Corporate Communications

Dual-class Shares

Articles 1 - 1 of 1

Full-Text Articles in Business

Takeover Defenses In The Era Of Shareholder Activism, Sa-Pyung Sean Shin Apr 2016

Takeover Defenses In The Era Of Shareholder Activism, Sa-Pyung Sean Shin

Research Collection School Of Accountancy

This paper examines the interplay between takeover defenses and shareholder activism. Using a comprehensive sample of shareholder activism events between 2006 and 2014, I find a differential impact of takeover defense measures on the likelihood of being targeted for activism; a dual-class structure or a staggered board deters activism, whereas firms with a poison pill in place are more likely to become targets. Activists are more likely to demand removal of takeover defense measures and/or sale of the target firm if the firm has a staggered board or a poison pill in place, suggesting that when takeover defenses block the …