Purpose – This paper aims to examine whether investment efficiency improves after publicly‐traded firms are taken private. Design/methodology/approach – The analysis uses univariate comparisons and regression analysis of panel data. Findings – Before going private, firms' investment...

We reexamine the negative relation between firm value and the number of antitakeover provisions a firm has in place. We document that firms with characteristics indicating low power to bargain for favorable terms in a takeover, but also indicating high potential agency costs, have more...

This paper examines the effect of restrictions over asset disposition, measured by the ratio of secured debt to fixed assets, on firm value. We find evidence consistent with two non-mutually exclusive hypotheses. (1) Restrictions on the disposition of assets reduce firm value by limiting a...