Page info: *Author: Mathiesen, H. *Document version: 2.6. *Copyright 1997-2019, H. Mathiesen. Legal notice. 


Table: Hypotheses - Effects of market for corporate control on performance and other incentive mechanisms in corporate governance


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8) From market for corporate control to corporate performance

8A: The presence of a well functioning market for corporate control may deter managers from running the firm below its performance potential since that would make the firm vulnerable to takeover (Manne [1965], Marris [1964], and Jensen and Ruback [1983]).


- Copyright 1997-2019, H. Mathiesen. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Legal notice.