Subramaniam, Chandra; Daley, Lane A. - In: Journal of Business Finance & Accounting 27 (2000-01) 1&2, pp. 1-36
We conjecture that golden parachutes are initiated when the agency cost of free cash flow is most severe. We examine the relation between golden parachutes and investment levels in firms that have been successfully acquired. Our results support these three conclusions. First, target firms...