Practitioners often claim that takeover pressure induces managerial myopia (short-termism), but academic research … provides limited empirical evidence supporting this assertion. This study fills this void by investigating how takeover threat … laws across countries as exogenous shocks that facilitate takeover transactions and increase takeover threat. While we find …

investors pay larger takeover premiums to a more conservative target firm. Overall, our findings suggest that unlike other …

We find that the threat of takeover has a negative relation with default risk. The result is robust to alternative … identify improvement in performance and earnings quality in response to the threat of takeover as channels underlying our main … result. We find that the threat of takeover on default risk is more pronounced for firms with low information asymmetry and …