Takeovers: Their Causes and Consequences

Business Ethics and the Decision to Adopt Golden Parachute Contracts: Empirical Evidence of Concern for All Stakeholders

“…The independent variables and the empirical estimation are consistent with the existing literature (Jensen, 1988). The existing literature predicts that the probability of a takeover is negatively related to ROA, R&D/Sales, TL/TA (Total liabilities/Total assets) and Log (TA).…”

“…Consistent with existing research (Jensen, 1988), both hypotheses predict that takeovers and internal events occur because a firm's performance is unprofitable (b5 < 0) and volatile (b6 < 0; b9 > 0). Also, Jensen (1988) reported that, in general, insider ownership (b4 < 0) is negatively related to both takeovers and internal control contests. Jensen further notes that outside director percentage was both positively and negatively related to takeovers (b3 > 0) and internal control contests (b3 < 0), respectively.…”

The impact of FDI through mergers and acquisitions on innovation in target firms

“…They suggest that M&As between rival firms lead to an overall reduction of R&D efforts, while they predict the opposite when the merged entities are technologically complementary. 6 M&As can also be an instrument to correct for managerial inefficiencies and weak corporate governance mechanisms (Jensen, 1988;Jensen and Ruback, 1983). Improved management practices and the rationalization of unprofitable projects -possibly including R&D efforts -can increase firm value and gains on the stock market can be realized.…”

Influential Factors of the Social Responsibility of Newspaper Corporations in South Korea

“…This perspective is based on the presumption that managers of publicly held firms usually attempt to maximize stockholder wealth with a vigorous ''market for corporate control'' as the primary control mechanism (Jensen, 1988).…”