Failed Takeover Attempts, Corporate Governance and Refocusing  

Oleh:

Bergh, Donald D. ; Chatterjee, Sayan ; Harrison, Jeffrey S.

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Strategic Management Journal vol. 24 no. 1 (2003), page 87-96.
Topik: CORPORATE; governance; agency; refocusing restructuring; takeovers

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS30.11 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Hostile takeover attempts often times signal that a target firm has an over - diversified and ineffective corporate strategy. What does this signal mean when takeover attempts fail ? Drawing from agency theory, we argue that target firms managed by independent directory boards are likely to ignore the takeover attempt and not refocus their firms' strategy. Conversely, target firms managed by non independent boards are more likely to view the failed takeover attempt as a "wake - up call" and will refocus their firms' strategy so as to preserve the firm's survival. These arguments are tested using a sample of 76 firms that were targets of failed hostile takeover attempts. Logistic regression analyses confirm the predictions. This study suggests that in the aftermath of a failed takeover attempt board od director characteristics can help predict changes in corporate strategies.

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