Unscheduled stock options to target CEOs are a non-trivial phenomenon during private merger negotiations. In 920 acquisition bids during 1999-2007, over 13% of targets grant them. These options substitute for golden parachutes and compensate target CEOs for benefits they forfeit because of the...

Firms covered by more analysts are more likely to become takeover targets and more likely to enter deals in which their acquirers initiate private merger negotiations. Moreover, when equity analysts' pre-acquisition price forecasts imply greater target undervaluation, target firms are more...

We present evidence that busy outside directors are associated with weak corporate governance based on a sample of U.S. industrial firms from 1989 to 1995. When a majority of outside directors serve on three or more boards, firms exhibit lower market-to-book ratios as well as weaker operating...

I analyze 1,493 first-time director appointments to the boards of Fortune 1000 firms during 1997-1999, to investigate whether certain outside directors are better than others. I find that investor reactions to director appointments are significantly higher when appointees are CEOs of other firms...