Authors
Alma Cohen, Charles CY Wang
Publication date
2013/12/1
Journal
Journal of Financial Economics
Volume
110
Issue
3
Pages
627-641
Publisher
North-Holland
Description
The well-established negative correlation between staggered boards (SBs) and firm value could be due to SBs leading to lower value or a reflection of low-value firms' greater propensity to maintain SBs. We analyze the causal question using a natural experiment involving two Delaware court rulings—separated by several weeks and going in opposite directions—that affected the antitakeover force of SBs. We contribute to the long-standing debate on staggered boards by presenting empirical evidence consistent with the market viewing SBs as leading to lower firm value for the affected firms.
Total citations
Scholar articles
A Cohen, CCY Wang - Journal of Financial Economics, 2013
LA Bebchuk, A Cohen, CCY Wang - 2011
LA Bebchuk, A Cohen, CCY Wang - Harvard Law School Program on Corporate …, 2011