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Both managerial ownership and performance are endogenously determined by exogenous (and only partly observed) changes in the firm's contracting environment. We extend the cross-sectional results of Demsetz and Lehn (1985) and use panel data to show that managerial ownership is explained by key...
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the acquiring firm increases, the interests of managers are more closely aligned with those of shareholders, reducing the …This paper examines the effect of the benefits of corporate control to managers on the relationship between managerial … acquisition premium. At sufficiently high levels of managerial ownership, managers value a reduction in the risk of their …
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