Journal of Banking & Finance Vol. 21 No. 3 1997
Nonshareholder constituency statutes and shareholder wealth: A note
Abstract
We assess the effects of the introduction and passage of state nonshareholder constituency statutes on shareholder wealth. We find a small, but significantly negative effect on shareholder wealth for companies incorporated in states passing nonshareholder constituency statutes that did not already have corporate takeover defenses in place. Further, we find that firms that are poorly managed (as proxied by low market-to-book ratios) react more negatively to the statutes.
- DOI
- 10.1016/s0378-4266(96)00047-7
- Volume
- 21
- Issue
- 3
- Pages
- 417-432
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib