Anti-Takeover Provisions And Corporate Disclosure

The authors examine the effects of Anti-Takeover Provisions (ATPs) on corporate disclosure by testing the following two hypotheses: The market pressure hypothesis, which predicts that firms with more ATPs will provide more information to the market and have higher earnings quality because ATPs help managers pursue long-term shareholder interests and not succumb to short-term market pressures, and the management entrenchment hypothesis, which predicts that firms with more ATPs will disclose less information and have lower earnings quality because ATPs help entrenched managers pursue private benefits at the expense of shareholders.