Valuation effects from implementing shareholder-friendly poison pill provisions
by Charmaine Glegg, Jeff Madura
International Journal of Corporate Governance (IJCG), Vol. 1, No. 2, 2008

Abstract: Poison pill adoptions may have varying effects on firm value. Shareholder-friendly pills have been adopted by firms in recent years, but have not been thoroughly examined in the financial literature. We find that the adoption of shareholder-friendly pills results in favourable valuation effects. The adoption of poison pills classified as unfriendly does not elicit a significant market response. Valuation effects are conditioned on the type of pills within the friendly or unfriendly category. Sunset and TIDE provisions elicit more favourable market responses than other friendly pills, while dead hand provisions elicit a less favourable market response than other unfriendly pills.

Online publication date: Sun, 05-Oct-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Corporate Governance (IJCG):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com