It is generally argued that the takeover constraint deters management from
A) engaging in opportunistic behavior.
B) considering acquiring other companies.
C) declaring dividends.
D) increasing the level of borrowing of a firm.

Question

Quizplus · Accepted Answer

The risk of being acquired by a hostile raider is often referred to as the takeover constraint. The takeover constraint deters management from engaging in opportunistic behavior.

It Is Generally Argued That the Takeover Constraint Deters Management