Staggered Boards

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.”