(1) Johnson Graduate School of Management, Cornell University, 14853 Ithaca, NY, USA
Abstract:
Proxy fights have received comparatively little attention relative to the more popular methods for corporate control transfer: merger and tender offers. This paper presents an analytic model of the proxy contest as a cooperative game with four players: management, passive shareholders, insurgent shareholders and a trust fund. The power of the players and the effectiveness of certain managerial actions is discussed.