We propose that an active takeover market provides incentives by offering acquisition opportunities to successful … and takeover threat. As a result, the takeover market is not sufficiently liquid and too few takeovers occur. Furthermore …, the liquidity in the takeover and managerial labour markets are inversely related. When poaching successful managers …

claim that the threat of takeover which they pose on the management of a poorly managed company is not only to their benefit …, but also to that of the target company in general, because the management will run the company better to maximize its … over the four fiscal years following such news. There is little evidence so far that the threat of a hostile takeover …