This Research Spotlight provides a summary of the academic literature on how staggered boards impact shareholder value by insulating management from the pressures of capital markets. It reviews the evidence of:
- Staggered board provisions in IPO charters
- The impact of staggered boards on merger activity
- The relation between staggered boards and market value
- Shareholder reaction to a decision to (de)stagger a board
- Firm outcomes following a decision to (de)stagger a board
This Research Spotlight expands upon issues introduced in the Quick Guide “The Market for Corporate Control.”