Hostile takeover threats, managerial myopia and asset redeployability

被引:4
作者
Chatjuthamard, Pattanaporn [1 ]
Boonlert-U-Thai, Kriengkrai [2 ]
Jiraporn, Pornsit [3 ]
Uyar, Ali [4 ]
Kilic, Merve [5 ]
机构
[1] Chulalongkorn Univ, Sasin Sch Management, Ctr Excellence CE Management Res Corp Governance, Bangkok, Thailand
[2] Chulalongkorn Univ, Fac Commerce & Accountancy, Bangkok, Thailand
[3] Penn State Univ, Great Valley Sch Grad Profess Studies, Malvern, PA 19355 USA
[4] Excelia Grp, Excelia Business Sch, La Rochelle, France
[5] Samsun Univ, Dept Int Trade & Business, Samsun, Turkey
来源
CORPORATE GOVERNANCE-THE INTERNATIONAL JOURNAL OF BUSINESS IN SOCIETY | 2023年 / 23卷 / 01期
关键词
Takeovers; Market for corporate control; Corporate governance; Redeployable asset; Asset redeployability; Asset specificity; Takeover market; Redeployable assets; CORPORATE SOCIAL-RESPONSIBILITY; SHORT-TERMISM; ANTITAKEOVER STATUTES; OWNERSHIP STRUCTURE; SHAREHOLDER RIGHTS; FIRM PERFORMANCE; BOARD STRUCTURE; AGENCY PROBLEMS; GOVERNANCE; MARKET;
D O I
10.1108/CG-11-2021-0402
中图分类号
F [经济];
学科分类号
02 ;
摘要
Purpose Exploiting two novel measures of takeover vulnerability and asset redeployability, this paper aims to investigate the effect of the takeover market on redeployable assets. Redeployable assets are those with alternative uses. Asset redeployability is a crucial concept in the literature on investment irreversibility. Design/methodology/approach In addition to the standard regression analysis, the authors execute several robustness checks: propensity score matching, entropy balancing, instrumental-variable analysis and generalized method of moment dynamic panel data analysis. Findings The authors' results reveal that more takeover threats reduce asset redeployability significantly, corroborating the managerial myopia hypothesis. Hostile takeover threats reduce managers' job security and thus induce them to myopically focus on the current utilization of assets in the short run, rather than how they may be deployed in the long run, resulting in less asset redeployability. Originality/value To the best of the authors' knowledge, this study is the first to investigate the effect of takeover threats on asset redeployability. Because the authors' measure of takeover vulnerability is principally based on the staggered passage of state legislations, which are plausibly exogenous, the authors' results likely reflect causality, rather than merely an association.
引用
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页码:169 / 188
页数:20
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