Are antitakeover charter amendments good news or bad news for managers and shareholders?

In recent years, many firms have adopted antitakeover amendments to their corporate charters. The amendments have come under criticism from those who believe that they are harmful, and little sentiment in favor of the amendments seems to exist. A study examines the issues related to antitakeover a...

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Journal Title: Journal of Applied Business Research Vol. 10; no. 2; pp. 82 -
Author: Victoria B. McWilliams
Format: Article
Published: Spring 1994
Subjects:
Summary: In recent years, many firms have adopted antitakeover amendments to their corporate charters. The amendments have come under criticism from those who believe that they are harmful, and little sentiment in favor of the amendments seems to exist. A study examines the issues related to antitakeover amendments and presents an overview of available empirical evidence about the amendments. The evidence demonstrates that the amendments are not always harmful and suggest that the amendments, in some cases, are beneficial. The criticism leveled against antitakeover amendments in general seems inappropriate. Most of the amendments, under some circumstances, appear to positively affect shareholder wealth, and under no circumstances do the amendments systematically harm shareholders.
ISSN: 0892-7626