Financial Constraints, Antitakeover Protection, and Corporate Innovation: An Empirical Analysis using Antitakeover Legislation
Bibliographic record
Abstract
We examine the impact of financial constraints on the relation between antitakeover protection and corporate innovation. On one hand, potential information asymmetry problems in financially constrained firms can exacerbate the entrenchment effect associated with increased antitakeover protection. On the other hand, the disciplinary role of financial constraints in the deployment of corporate resources can mitigate the entrenchment effect, allowing the shareholder interest effect to dominate. Using the passage of business combination (BC) laws to identify an exogenous variation in antitakeover protection, we find that corporate innovative activities significantly increase in the post-adoption periods for financially constrained firms incorporated in states that adopted the laws, evidence that is consistent with the mitigating effect hypothesis. Our results are robust to controlling for firm and year fixed effects, and are not subject to potential reverse causality in the passage of antitakeover laws.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.001 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".