managers' incentive compensation packages. I find that shareholder value increases with risk and therefore managerial risk … aversion creates potential agency conflicts between managers and shareholders. I also find that firms provide managers with … idiosyncratic (rather than systematic) risk and managers are more risk-averse. Collectively, these results suggest that firms …

principal (target firm shareholders) and agent (target firm managers) are often in conflict. Moreover, the actions and stated … rationale of target managers in resisting or not resisting tender offers are readily observable, and the size of the possible …'s managers. The relationships between managerial actions and bid premium size, bidder nationality, conglomerate offers, and "ex …