Staggered Boards

Staggered Boards

By
David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. September
2015

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.”