Influence of antitakeover provisions on risk taking of listed companies(PDF)
《长安大学学报（社科版）》[ISSN:1671-6248/CN:61-1391/C]
- Issue:
- 2020年02期
- Page:
- 23-37
- Research Field:
- 国际经济与贸易
- Publishing date:
Info
- Title:
- Influence of antitakeover provisions on risk taking of listed companies
- Author(s):
- ?DENG Wei; ZHAI Yuxiang; ZHANG Yixuan
- ?（School of Finance，Nanjing University of Finance and Economics，Nanjing 210046，Jiangsu，China）
- Keywords:
- anti-takeover provision; Tobit; listed company; risktaking; equity incentive; CEO
- PACS:
- F830.91
- DOI:
- -
- Abstract:
- In response to the relationship between the antitakeover provisions preestablished in the articles of associationof the listed companies and their risktaking abilities, this paper adopts the empirical methods such as OLS and Tobit model based on the panel data of Ashare listed companies from 2008 to 2017, examines the relationship between the six types of antitakeover provisions, namely cumulative voting,supermajority provision, time and share limitation to nominate directors, qualification examination of the board of directors and staggered board, and the companies’ risktaking abilities, and examines issues such as endogeneity of independent variables, lagged effect of independent variables, nonlinear impact, measurement of risktaking and individual effect of companies, before conducting relevant robustness tests. The research results show that there is a positive correlation between the number of antitakeover provisions and the companies’ risktaking abilities. The more antitakeover provisions a listed company has, the more capable it is to take risks. Furthermore,this impact is more pronounced in companieswhich have a more dispersive share structure, a CEO as the founder or having equity incentive, which belong to private companies in terms of the nature of property right and belong in the innovative industry. Therefore, the innovative companies should be encouraged to formulate antitakeover provisions to stabilize their ownership structure, allowing the management to focus more on the companies’ longterm development.
Last Update: 2020-05-25