We examine performance and management characteristics of Fortune 500 firms experiencing one of three types of control … change: internally precipitated management turnover, hostile takeover, and friendly takeover. We find that firms experiencing … internally precipitated management turnover perform poorly relative to other firms in their industries, but are not concentrated …

wealth maximization derived from shareholders' status as residual claimants are vulnerable on several fronts. Share … quasirents, expected earnings beyond expected costs of capital from investors, to which shareholders have no obvious claim. Other … made firm-specific investments, may exert stronger claims than atomistic public shareholders have to shares of their firms …