Managerial Share Ownership and the Stock Price Effects of Antitakeover Amendment Proposals

McWilliams, Victoria B.

doi:10.2307/2328754

Cited by 33 publications

(26 citation statements)

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“…While we expected a certain direction of each variable's movement in our hypotheses, variables could show unexpected movements which were statistically significant. In addition, because parametric test is quite sensitive to extreme outliers (McWilliams, 1990), this study also employed non-parametric tests such as Wilcoxon signed rank test and sign test. Tables 3-17 present the results of the certified firms' abnormal performance in terms of ROA, ROS, stock price, COGS/Sales, and Sales growth rate (SGR).…”

Section: Resultsmentioning

confidence: 99%

Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification

Lee

Noh

Choi

et al. 2017

Corp Soc Responsibility Env

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This study investigated the financial performances of environmental policy by using the long-term effect of ISO 14001 certification. Drawing on a natural-resource-based view of the firm, this study examined abnormal performances of ISO 14001 certified firms on the New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ) in the USA during the period 1996-2010 employing a rigorous event study methodology. The results indicate that the profitability variables showed immediate positive abnormal effects after firms applied for the ISO 14001 certification, while the market benefit variable showed gradual improvements after obtaining the certification. However, ISO 14001 did not show significant effect on the internal process improvement. Overall, ISO 14001 was found beneficial to the firm in the long run from the perspectives of profitability and market benefits.

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Section: Resultsmentioning

confidence: 99%

Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification

Lee

Noh

Choi

et al. 2017

Corp Soc Responsibility Env

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“…Jarrell and Poulsen (1987) and Baghat and Jefferis (1991) find that companies' share values tend to decline when firms amend their charters to adopt an ATP. 4 McWilliams (1990) and McWilliams and Sen (1997) find that the effect of ATP amendments depends on the extent of inside ownership and control. The greater inside ownership and control are, the more negative the impact of an ATP.…”

Section: Prior Empirical Workmentioning

confidence: 99%

Do IPO Charters Maximize Firm Value? Antitakeover Protection in IPOs

Daines

Klausner

2000

SSRN Journal

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This paper focuses on the widely held views that: (a) antitakeover provisions (ATPs) increase agency costs, thereby reducing firm value; and (b) firms going public minimize agency costs, thereby maximizing firm value. We show that these views cannot comfortably co-exist: ATPs are common in a sample of IPO-stage charters. Moreover, ATP use is not explained by two efficiency explanations of * New York University. Email: robert.daines@nyu.edu. Phone: (212) ATP use with theoretical support --target firms' need for bargaining power when a bid is made and the threat of managerial myopia. Rather, we find that antitakeover protection is used to protect management when takeovers are most likely and management performance most transparent. ATP use, however, is uncorrelated with a proxy for high private benefits.

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“…To take into account this effect, we introduce a "DUMMY" variable which equals 1 if managerial ownership is more than 15%, otherwise it is zero. McWilliams (1990) justifies this threshold value by suggesting that managers begin to deviate from firm-value-maximizing behavior if the equity shares of managers are above 10% and below 20%.…”

Section: Managerial Ownershipmentioning

confidence: 96%

On the Determinants of Dividends’ Information Content

Said¹

2012

JMS

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This paper examines the determinants of dividends' information content. We put an emphasis on the role of ownership structure in explaining the impact of dividends on shareholders' wealth. To this end, our study examined a sample of 136 French firms during the year 2007 to empirically validate our model. The empirical results show a negative reaction of stock prices to dividend announcement. This finding is consistent with the hypothesis of deterioration of growth opportunities. However, we have concluded that firms' characteristics significantly affect dividends' information content.

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Managerial Share Ownership and the Stock Price Effects of Antitakeover Amendment Proposals

Cited by 33 publications

References 0 publications

Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification

Environmental Policy Performances for Sustainable Development: From the Perspective of ISO 14001 Certification

Do IPO Charters Maximize Firm Value? Antitakeover Protection in IPOs

On the Determinants of Dividends’ Information Content

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