In This Story
People Mentioned in This Story
Body
Businesses that don鈥檛 have poison pill defenses 鈥渨ritten into their charter tend to earn excess returns.鈥 Derek Horstmeyer, professor of finance, says in Business Insider that 鈥渢his is because since they are exposed to market discipline (threat of takeover), management acts in the best interest of the shareholders.鈥