It is generally argued that the takeover constraint : Deters management from engaging in opportunistic behavior. Deters management from considering acquiring other companies. Deters management from declaring dividends. Deters management from increasing a firm’s level of borrowing.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter10: Corporate Governance
Section: Chapter Questions
Problem 3MC
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It is generally argued that the takeover constraint :

Deters management from engaging in opportunistic behavior.

Deters management from considering acquiring other companies.

Deters management from declaring dividends.

Deters management from increasing a firm’s level of borrowing.

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