Staggered boards, corporate opacity and firm value

Augustine Duru, Dechun Wang and Yijiang Zhao

Journal of Banking & Finance, 2013, vol. 37, issue 2, 341-360

Abstract: We explore the effect of corporate opacity on the relation between staggered boards and firm value. We find that through mitigating takeover pressure, staggered boards become increasingly beneficial to firm value as opacity increases. In addition, we document that staggered boards reduce value only in transparent firms. Additional tests indicate that, as opacity increases, staggered boards bear an increasingly positive relation to research and development and CEO pay-performance sensitivity. Taken together, these results suggest that corporate opacity affects the value impact of takeover protection.

Keywords: Staggered boards; Antitakeover provisions; Corporate opacity; Performance (search for similar items in EconPapers)
JEL-codes: G3 K2 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:37:y:2013:i:2:p:341-360

DOI: 10.1016/j.jbankfin.2012.09.002

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