Corpus ID: 3049166

Do AntiTakeover Provisions Spur Corporate Innovation ?

@inproceedings{Chemmanur2012DoAP,
  title={Do AntiTakeover Provisions Spur Corporate Innovation ?},
  author={Thomas J. Chemmanur},
  year={2012}
}
We study the relation between antitakeover provisions (ATPs) and corporate innovation, and show that ATPs affect firm value through a novel “innovation channel.” We find that firms with a larger number of ATPs are more innovative. To establish causality, we use a regression discontinuity approach relying on “locally” exogenous variation in the number of ATPs generated by governance proposal votes that pass or fail by a small voter margin, as well as an instrumental variable approach. The… Expand
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