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