Governance Measures

Measures

Key: Measure - Build - Sources - Paper

• Corporate Governance (anti-takeover provision or ATP) Indices - Gompers et al 2003 uses 24 IRRC antitakeover provisions & adds one point to index for each provision that enhances managerial power. Bebchuk et al 2009 takes only 6 of those provisions for its index (staggered boards, limits to shareholder bylaw amendments, limits to shareholder charter amendments, supermajority requirements for mergers, poison pills, and golden parachutes - SDC M&A Database, acquirer has financial info thru Compustat and CRSP Daily Stock Price & Returns File, acquirer is included in Investor Responsibility Research Center (IRRC) of antitakeover provisions - Masulis et al 2011

Papers

PDF copies of all papers found under the following directory:

• E:\McNair\Projects\Winner's Curse\Papers

Masulis et al 2011

@article{masulis2007corporate,
 title={Corporate governance and acquirer returns},
 author={Masulis, Ronald W and Wang, Cong and Xie, Fei},
 journal={The Journal of Finance},
 volume={62},
 number={4},
 pages={1851--1889},
 year={2007},
 publisher={Wiley Online Library},
 abstract={We examine whether corporate governance mechanisms, especially the market for corporate control, affect the profitability of firm acquisitions. We find that acquirers with more antitakeover provisions experience significantly lower announcement-period abnormal stock returns. This supports the hypothesis that managers at firms protected by more antitakeover provisions are less subject to the disciplinary power of the market for corporate control and thus are more likely to indulge in empire-building acquisitions that destroy shareholder value. We also find that acquirers operating in more competitive industries or separating the positions of CEO and chairman of the board experience higher abnormal announcement returns.}
}

Bebchuk et al 2009

@article{bebchuk2009matters,
 title={What matters in corporate governance?},
 author={Bebchuk, Lucian and Cohen, Alma and Ferrell, Allen},
 journal={Review of Financial studies},
 volume={22},
 number={2},
 pages={783--827},
 year={2009},
 publisher={Soc Financial Studies}
}

Wang et al 2009

@article{wang2009corporate,
 title={Corporate governance transfer and synergistic gains from mergers and acquisitions},
 author={Wang, Cong and Xie, Fei},
 journal={Review of Financial Studies},
 volume={22},
 number={2},
 pages={829--858},
 year={2009},
 publisher={Soc Financial Studies}
}

Moeller et al 2007

@article{moeller2007diversity,
 title={How do diversity of opinion and information asymmetry affect acquirer returns?},
 author={Moeller, Sara B and Schlingemann, Frederik P and Stulz, Ren{\'e} M},
 journal={Review of Financial Studies},
 volume={20},
 number={6},
 pages={2047--2078},
 year={2007},
 publisher={Soc Financial Studies}
}

Bhagat & Bolton 2008

@article{bhagat2008corporate,
 title={Corporate governance and firm performance},
 author={Bhagat, Sanjai and Bolton, Brian},
 journal={Journal of corporate finance},
 volume={14},
 number={3},
 pages={257--273},
 year={2008},
 publisher={Elsevier}
}

Gompers et al 2003

@techreport{gompers2001corporate,
 title={Corporate governance and equity prices},
 author={Gompers, Paul A and Ishii, Joy L and Metrick, Andrew},
 year={2001},
 institution={National bureau of economic research}
}

Harford et al 2006

@incollection{harford2012corporate,
 title={Corporate governance and firm cash holdings in the US},
 author={Harford, Jarrad and Mansi, Sattar A and Maxwell, William F},
 booktitle={Corporate Governance},
 pages={107--138},
 year={2012},
 publisher={Springer}
}

Giroud & Miller 2011

@article{giroud2011corporate,
 title={Corporate governance, product market competition, and equity prices},
 author={Giroud, Xavier and Mueller, Holger M},
 journal={The Journal of Finance},
 volume={66},
 number={2},
 pages={563--600},
 year={2011},
 publisher={Wiley Online Library}
}