Chaudhuri, Ranadeb; Seo, Hoontaek - In: International Journal of Business and Economics 9 (2010) 1, pp. 29-43
We investigate the effect of classified boards on the market reaction to seasoned equity offering (SEO) announcements … and the operating performance following SEOs. We find that firms with classified boards on average earn lower SEO … results support the view that classified boards entrench managers and are ineffective in preventing them from misusing funds …