Takeover bids and target directors' incentives: the impact of a bid on directors' wealth and board seats

@article{Harford2003TakeoverBA,
  title={Takeover bids and target directors' incentives: the impact of a bid on directors' wealth and board seats},
  author={J. Harford},
  journal={Journal of Financial Economics},
  year={2003},
  volume={69},
  pages={51-83}
}
  • J. Harford
  • Published 2003
  • Business
  • Journal of Financial Economics
Abstract I investigate the nature of the incentives that lead outside directors to serve stockholders’ interests. Specifically, I document the effect of a takeover bid on target directors, both in terms of its immediate financial impact and its effect on the number of future board seats held by those target directors. Directors are rarely retained following a completed offer. All target directors hold fewer directorships in the future than a control group, suggesting that the target board seat… Expand
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