The shareholder interests theory suggests that shareholders gain when management resists takeover
attempts.

Question

Quizplus · Accepted Answer

The shareholder interests theory suggests that management should resist takeover attempts in order to protect the interests of shareholders. This is because a successful takeover would often result in a change in management, potentially leading to a decrease in shareholder value. Therefore, shareholders would generally benefit if management resists takeover attempts.

The Shareholder Interests Theory Suggests That Shareholders Gain When Management