Corporate governance and merger activity in the U.S.
Subtitle: making sense of the 1980s and 1990s
By: Bengt Holmstrom [and] Steven N. Kaplan
Contributors: Kaplan, Steven N.; Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 01-11; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 01-11.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2001
Place of publication: Cambridge, MA
Language: eng
Number of pages: 44
Description: This paper describes and considers explanations for changes in corporate governance and merger activity in the United States since 1980. Corporate governance in the 1980s was dominated by intense merger activity distinguished by the prevalence of leveraged buyouts (LBOs) and hostility. After a brief decline in the early 1990s, substantial merger activity resumed in the second half of the decade, while LBOs and hostility did not. Instead, internal corporate governance mechanisms appear to have played a larger role in the 1990s. We conclude by considering whether these changes and the movement toward shareholder value are likely to be permanent. Keywords: Corporate Governance; Stock Options; Mergers and Acquisitions .
Notes: Title from cover.

"February 2001." "First draft: September 2000, this draft: February 19, 2001"--Abstract.

Includes bibliographical references (p. 37-43).

Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.