Do Takeover Defenses Deter Takeovers?

Do Takeover Defenses Deter Takeovers?

Jonathan M. Karpoff

University of Washington – Michael G. Foster School of Business

Robert J. Schonlau

BlackRock’s Larry Fink: Not all ETF investors are passive

Larry Fink,Laurence Fink, BlackRock, Inc., world's largest asset manager, American multinational investment management corporation, American financial executive, CEO, Chairman, Barclays Global Investors, assets under management, alternative investments, Wall Street, BLK, Hedge funds, valuewalk, ETFs, ishares, robo-investing, robo analysts, quant fundsBlackRock CEO Laurence Fink spoke at Morningstar's recent conference, and he talked about a variety of things, like his concerns about company culture at a time when all the firm's employees are working at home. Despite those concerns, he doesn't think BlackRock will ever be 100% working in the office. He thinks employees will always Read More


Brigham Young University – Department of Finance

Eric W Wehrly

Albers School of Business & Economics, Dept of Finance

August 14, 2015

Abstract:

The G-index and E-index are used extensively in financial research to measure firms’ takeover defenses. Using instruments for a firm’s use of takeover defenses based on a firm’s geography and IPO cohort, we report the first direct evidence that the G-index and E-index are indeed negatively related to acquisition likelihood. The relation between takeover likelihood and the G-index is driven by a subset of 14 provisions, most of which are not in the E-index and four of which have positive impacts on takeover likelihood.

Do Takeover Defenses Deter Takeovers?

 

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