Three essays in corporate finance

Abstract

Chapter 1 investigates the impact of the market for corporate control on firm-level organization capital. I use the enactment of antitakeover laws as an exogenous decrease in the disciplinary effect of the market for corporate control. The results show that organization capital decreases after the enactment of antitakeover laws. These results are verified through various endogeneity and robustness tests. I find that the enactment of antitakeover laws has a less pronounced impact on brand capital and R&D. Also, stronger corporate governance mitigates the decrease in organization capital. I show that this decline in organization capital contributed to the decline in firm value after enactment of antitakeover laws. Moreover, I find that reductions in the inflow of inventors, total factor productivity and labor mobility are possible mechanisms through which antitakeover laws impact organization capital.