The Disciplinary Role of Takeovers

David S. Scharfstein

489 citations0/0 files storedThe Review of Economic Studies

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Corporate Finance and Governance Merger and Competition Analysis Law, Economics, and Judicial Systems

Abstract

This paper presents a theory of the disciplinary role of takeovers based on an explicit model of managerial incentive problems stemming from asymmetric information. It is argued that an informed raider can reduce incentive problems by making managerial compensation more sensitive to information unavailable to shareholders. The paper also highlights the importance of specifying the source of contractual inefficiencies when analyzing the effect of takeovers on incentives.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 489 citations exist upstream.

References

1986The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration 1980Takeover Bids, The Free-Rider Problem, and the Theory of the Corporation

Cited by

2015Has the US Finance Industry Become Less Efficient? On the Theory and Measurement of Financial Intermediation 2016Playing it safe? Managerial preferences, risk, and agency conflicts 2006Asymmetric benchmarking in compensation: Executives are rewarded for good luck but not penalized for bad 2001Who Disciplines Management in Poorly Performing Companies?1999A Rent-Protection Theory of Corporate Ownership and Control 1989Chapter 2 The theory of the firm 2015Financial Development and Deployment of Renewable Energy Technologies 2003Entrenchment and Severance Pay in Optimal Governance Structures

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.