search query: @author McConnell, J.J. / total: 6
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| Author: | Martin, K.J. Mcconnell, J.J. |
| Title: | Corporate performance, corporate takeovers, and management turnover |
| Journal: | Journal of Finance
1991 : JUN, VOL. 46:2, p. 671-687 |
| Index terms: | MERGERS TURNOVER |
| Language: | eng |
| Abstract: | The hypothesis that an important role of corporate takeovers is to discipline the top managers of poorly performing target firms is examined. It is documented that the turnover rate for the top manager of target firms in tender offer-takeovers significantly increases following completion of the takeover and that prior to the takeover these firms were significantly under-performing other firms in their industry as well as other target firms which had no post-takeover change in the top executive. It is indicated that the takeover market plays an important role in controlling the nonvalue maximizing behavior of top corporate managers. |
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