Although the role of managers is crucial in shaping firm innovation, it also poses a dilemma. Because innovation is a … complicated and long-term process that requires effort and attention, managers may reduce effort in innovation when faced with … that managers tend to be more myopic when firms are exposed to hostile takeover threats. Managers will put less effort into …

-optimal leverage levels that promote their own private benefits at the expense of shareholders. Using Bebchuk, Cremers, and Peyer … imply that agency problems lead to self-serving behavior only when managers command sufficient influence in the company …