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Several studies argue that governance provisions protect managers from the discipline. However, studies examining the relation between the deployment of governance provisions and managerial discipline provide mixed results. This paper examines whether managers of firms with a high number of provisions are less likely to be replaced following value-reducing acquisition decisions. CEOs of firms with a high number of provisions are as likely to face disciplinary turnover as are CEOs of firms with a low number of provisions, which suggests that the aggregate number of governance provisions is not a useful measure of managerial entrenchment.
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