The Effect of Golden Parachutes on Shareholder Wealth and Takeover Probabilities
This study seeks to determine whether stockholders experience increases in wealth due to a company's adoption of a golden parachute and resulting increased takeover bid probability. Market reaction to golden parachute adoption is examined by employing event analysis, logit analysis and metric regression. Our findings indicate that the adoption of a golden parachute does not signify an increased probability of a takeover bid, and stockholders experience a decrease in wealth. Copyright Blackwell Publishers Ltd 1997.
Year of publication: |
1997-04
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Authors: | Hall, Pamela L. ; Anderson, Dwight C. |
Published in: |
Journal of Business Finance & Accounting. - Wiley Blackwell, ISSN 0306-686X. - Vol. 24.1997-04, 3, p. 445-463
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Publisher: |
Wiley Blackwell |
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