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→Measures
Note: Each paper seems to use one of three indices, the GIM, E (from BCF), or ATI index (from CN 2005), as a measure of corporate governance. The GIM & E indices are much more commonly cited than the ATI index. Most papers also exclude companies with dual-class shares because GIM did that originally.
*Corporate Governance (anti-takeover provision or ATP) Indices - Gompers et al 2003 (GIM) uses 24 IRRC antitakeover provisions & adds one point to index for each provision that enhances managerial power and is available 1990-2002 with sample size 11,736. Bebchuk et al 2009 (BCF) takes only 6 of those provisions for its entrenchment index (staggered boards, limits to shareholder bylaw amendments, limits to shareholder charter amendments, supermajority requirements for mergers, poison pills, and golden parachutes) and is available 1990-2002 with sample size 11,736 . Cremers & Nair 2005 develops the alternative takeover protection index (ATI) which focuses on only three key antitakeover provisions (the presence of staggered boards, poison pills, and restrictions on shareholder voting to call special meetings or act through written consent - SDC M&A Database, acquirer has financial info thru Compustat and CRSP Daily Stock Price & Returns File, acquirer is included in Investor Responsibility Research Center (IRRC) of antitakeover provisions - Masulis et al 2011
*GIM Difference - Target GIM index less Bidder GIM index - IRRC, SDC, Compustat, CRSP - Wang et al 2009
*TCL (The Corporate Library) Benchmark Score - The benchmark score is based on the following criteria: whether the board is classified, whether the outside directors constitute a majority on the board, whether the board has an independent chairman or lead director, whether the audit committee consists of only independent directors, whether the board has adopted a formal governance policy, number of directors with more than fifteen years tenure, number of directors who serve on more than four boards, number of directors older than seventy years old, and CEO compensation structure. The index ranges from a feasible low of 0 to a high of 100. - The Corporate Library (TCL) available 2001-2003 Sample size of 4168 - Bhagat & Bolton 2008
