Are Antitakeover Charter Amendments Good News Or Bad News For Managers And Shareholders?

Abstract

In recent years many firms 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. This article discusses 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 indeed suggests that the amendments, at least in some cases, are beneficial.