Dow, James - In: Journal of Financial Economics 110 (2013) 3, pp. 680-695
negative signal about board ability. Entrenchment in this model does not result from CEO power, or from agency problems …. Entrenchment is mitigated when there are more assets-in-place relative to investment opportunities. The paper also compares public … and private equity. Private ownership eliminates CEO entrenchment, but market signals improve investment decisions …