State Regulation of Takeovers and Shareholder Wealth: The Effects of New York State's 1985 Takeover Statutes

Laurence Schumann

Study examines the stock market's reactions to two anti-takeover statutes passed by New York State in 1985. Findings indicate that the law resulted in an average decline in equity value of nearly one percent ($1.2 billion) for a sample of 94 firms governed by the statute.