Governance and innovation

Becker‐Blease, John R.

doi:10.1016/j.jcorpfin.2011.04.003

Cited by 118 publications

(49 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…A detailed set of corporate governance provisions are analysed, rather than one single dimension, which allows the taking into account of several dimensions simultaneously. The focus on practices affecting the relationships between managers and shareholders allows the testing of the basic premises of agency theory, with respect to R&D. The paper provides empirical evidence on a multi-country sample of companies, thus complementing previous studies, which focused on single countries, such as France (Lhuillery, 2011), the United Kingdom (Driver and Coelho Guedes, 2012) or the United States (Becker-Blease, 2011). Addressing these issues is important because policies designed to improve shareholders' protection might actually have a negative impact on flexibility and risktaking, as evidenced by recent studies on the consequences of the Sarbanes-Oxley Act in the United States (Bargeron et al, 2010;Cohen et al, 2009).…”

Section: Introductionmentioning

confidence: 89%

Corporate governance practices and companies’ R&D intensity: Evidence from European countries

2015

View full text Add to dashboard Cite

Section: Introductionmentioning

confidence: 89%

Corporate governance practices and companies’ R&D intensity: Evidence from European countries

2015

View full text Add to dashboard Cite

“…Consistent with this argument, Faleye et al () show that intense monitoring on the management leads to diminished corporate innovation. Becker‐Blease (), Chemmanur and Tian (), and Cremers et al () provide evidence that classified boards are positively related to firm value and innovation, and Cremers et al () show that board declassification is associated with significant firm value decrease. While previous literature mainly investigates the positive impact of classified boards on firm value measured by Tobin's Q or innovation output, we focus on the M&A target valuation because it provides an advantage in measuring the value of R&D investment…”

Section: Literature Reviewmentioning

confidence: 99%

“…To the best of our knowledge, this is the first study to relate classified boards to target shareholder value through better R&D and innovation. While existing studies show the positive impact of classified boards, they have mainly been concerned with either stronger bargaining power (e.g., Comment and Schwert ; Bates et al ; Kadyrzhanova and Rhodes‐Kropf ), or been focused on firm value measured by Tobin's Q or innovation (e.g., Becker‐Blease ; Cremers et al ; Chemmanur and Tian ). The study by Humphery‐Jenner () is the closest to this study, but the subject of his research is acquiring firms, not targets, and the effects of R&D intensity and external governance are not considered.…”

Section: Introductionmentioning

confidence: 99%

Impact of Classified Board on M&A Target Shareholder Value: Nurturing Innovation through Entrenchment

2018

View full text Add to dashboard Cite

We find that classified board in the M&A target firm is positively related to the target shareholder value, but only for firms with both intensive R&D investment and strong external governance. We also find that firms with classified board exhibit superior quality innovation when they have both intensive R&D investment and strong external governance. These findings are consistent with the view that classified board provides long‐term perspectives that promote productive but risky R&D investment, which is highly valued in M&A. Our findings are distinct from the view expressed in extant literature that classified board enhances target shareholder value because of stronger bargaining power.

show abstract

“…In fact, shareholder wealth rises when management takes action to prevent changes in control (Gaughan, 2007;Becker-Blease, 2011). Pearce and Robinson (2004) point out that rejecting the initial offer may force the offeror to sweeten the offer.…”

Section: Corporate Governance Mechanisms In Hostile Takeoversmentioning

confidence: 99%

The influence of post-2008 legislation on an acquisition that turned hostile: A South African case study

Biggs¹,

Scheepers²,

Botha³

2017

SAJBM

View full text Add to dashboard Cite

Hostile acquisitions have a significant impact on managers and employees. The possibility of an acquisition creates uncertainty and when the acquisition turns hostile it is even more disruptive to the target organisation. Also, negative perceptions are often created in the media about the acquirer that influence employees' attitudes in the target organisation. Processes to successfully integrate the acquirer and target organisations are impacted by these antagonistic pre-acquisition circumstances.The Companies Act (no.71 of 2008) created opportunities for shareholders to hold an acquired company's management accountable for financial performance and the researchers set out to investigate how the intent of the new legislation played out in practice, by studying an acquisition that turned hostile. The single case study research methodology revealed the manoeuvring of both the acquiring and acquired companies which utilised the mechanisms available to them through the new legislative, regulatory and corporate governance landscapes. The researchers provide an extensive review of the relevant mergers and acquisitions' literature, as well as influence of the international legislative environment on the current local regulations. These regulations in turn, inform corporate governance and ultimately board behaviours. The researchers conducted qualitative interviews with key role players as well as legal and financial experts. The findings of the thematic analysis and triangulation process, informed a conceptual frame of three episodes.

show abstract

Governance and innovation

Cited by 118 publications

References 52 publications

Corporate governance practices and companies’ R&D intensity: Evidence from European countries

Corporate governance practices and companies’ R&D intensity: Evidence from European countries

Impact of Classified Board on M&A Target Shareholder Value: Nurturing Innovation through Entrenchment

The influence of post-2008 legislation on an acquisition that turned hostile: A South African case study

Contact Info

Product

Resources

About