Haan, Marco; Riyanto, Yohanes - Faculteit Economie en Bedrijfskunde, Rijksuniversiteit … - 1999
We study the role of takeover threats as a corporate control mechanism using Aghion and Tirole's (1997) model of formal and real authority. Shareholders do not monitor the manager's actions, since ownership is widely dispersed. A corporate raider may monitor, and steps in if a profit opportunity...