Changes

Note: Each paper seems to use one of two indices, the GIM or E index (from BCF) to , as a measure of corporate governance

*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 powerand 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 - 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

*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*BC GovScore - Fifty-two firm characteristics and provisions are used to assign a score to each firm. The feasible range of scores is from 0 to 52. A high score is associated with better corporate governance. - The GovScore is constructed from data compiled by Institutional Shareholder Services ("ISS"), as described in Brown, Caylor (2004). - Bhagat & Bolton 2008