POISON PILLS AND CEOS: THE RÉSUMÉ MATTERS

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Abstract

Previous research has linked poison pill to corporate governance characteristics such as ownership structure and board composition while overlooking the attributes of top managers involved in poison pill decision. Based on upper echelons perspective, we changed the focus by investigating the effect of CEO characteristics on poison pills, as measured by age, business education, and outside directorships. Using a sample of Fortune 500 manufacturing firms, we found that CEO business education is positively associated with poison pills, while CEOs’ outside directorships are negatively associated with poison pills. Furthermore, we found that CEO duality moderates the relationship between CEO business education and poison pills. We make implications for both corporate governance research and managerial practices regarding firms’ anti-takeover provisions.

Keywords: Poison Pills, CEO, Business Education, Outside Directorships

How to cite this paper: Sanford, D. Jr., Ji, Y.-Y., & Oh, W.-Y. (2012). Poison pills and CEOs: The résumé matters. Corporate Board: role, duties and composition, 8(2), 24-43. https://doi.org/10.22495/cbv8i2art3