TY - JOUR
T1 - Principal-principal conflicts under weak institutions
T2 - A study of corporate takeovers in China
AU - Li, Jiatao
AU - Qian, Cuili
PY - 2013/4
Y1 - 2013/4
N2 - The principal-principal perspective is tested and extended in the context of corporate takeovers of Chinese publicly listed firms from 1998 to 2007. The resistance of a target firm's controlling shareholder toward potential takeovers reflects the conflict between the principal and minority shareholders. It was found that this resistance weakens when target firms are located in regions with more institutional development, where the minority shareholders' interests are better protected. The resistance also decreases for target firms with CEOs who are politically connected, as these CEOs may be more interested in their own political careers than in representing the interests of the controlling shareholders. Copyright © 2012 John Wiley & Sons, Ltd.
AB - The principal-principal perspective is tested and extended in the context of corporate takeovers of Chinese publicly listed firms from 1998 to 2007. The resistance of a target firm's controlling shareholder toward potential takeovers reflects the conflict between the principal and minority shareholders. It was found that this resistance weakens when target firms are located in regions with more institutional development, where the minority shareholders' interests are better protected. The resistance also decreases for target firms with CEOs who are politically connected, as these CEOs may be more interested in their own political careers than in representing the interests of the controlling shareholders. Copyright © 2012 John Wiley & Sons, Ltd.
KW - China
KW - institutional development
KW - political connections
KW - principal-principal conflicts
KW - takeovers
UR - http://www.scopus.com/inward/record.url?scp=84874451901&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-84874451901&origin=recordpage
U2 - 10.1002/smj.2027
DO - 10.1002/smj.2027
M3 - RGC 21 - Publication in refereed journal
SN - 0143-2095
VL - 34
SP - 498
EP - 508
JO - Strategic Management Journal
JF - Strategic Management Journal
IS - 4
ER -