| Article ID: | iaor201523010 |
| Volume: | 13 |
| Issue: | 3 |
| Start Page Number: | 221 |
| End Page Number: | 231 |
| Publication Date: | Sep 1990 |
| Journal: | Journal of Financial Research |
| Authors: | Jahera John S, Pugh William N |
| Keywords: | government, investment |
The market reaction to state antitakeover legislation is examined case by case and in aggregate for six bills from four influential states that passed second‐generation antitakeover statutes. Prior research offers mixed conclusions concerning the effect. In contrast to the reactions in some earlier studies, negative market reactions in this study are weak, producing little evidence of any permanent harm to shareholder wealth.