RESEARCH NOTES AND COMMENTARIES; SUCCESSION PLANNING VS. AGENCY THEORY: A OF PLURALITY ANNOUNCEMENT MARKET RETURNS

摘要

In this note we respond to Harris and Helfat's (1998) reinterpretation of the results in Worrell, Nemec, and Davidson (1997). Harris and Helfat argued that the negative stock market response Associated with plurality announcements could be the result of inadequate corporate succession planning rather than with the agency cot explanation. Our results, here, show that duality And plurality announcements do not hurt shareholder wealth as long as there is an heir Apparent and, therefore, are more consistent with the succession planning explanation than With agency theory.