The Consequences to Directors of Deploying Poison Pills

摘要: We examine the labor market consequences for directors who adopt poison pills. Directors become associated with pill adoption experience significant decreases in vote margins and increases termination rates across all their directorships. They also a decrease likelihood of new board appointments. Firms have positive abnormal stock price reactions when pill-associated die or depart boards, compared to zero returns other directors. Further tests indicate that these adverse accrue primarily involved pills at seasoned firms not young firms. conclude suffer value services, director thus plays an important role firms’ governance.