Takeovers result in the transfer of bondholders' claims from the target to the acquiring firm, providing a setting to examine the impact of a change in shareholder power on bondholders. We find that an increase in the holdings of the top 5 acquirer institutional owners, a measure of shareholder...

We examine how friendly boards affect firm innovation. Using CEO-director social connections as a measure of board friendliness, we find that firms with friendly boards create more patents and citations. The positive relation between friendly boards and innovation are more pronounced when firms'...

Previous empirical work on adverse consequences of CEO overconfidence raises the question of why firms would hire overconfident managers. Theoretical research suggests a reason, that overconfidence can sometimes benefit shareholders by increasing investment in risky projects. Using options- and...