weak shareholder rights a product market rationale kj martijn cremers vinay b nair urs peyer first version march 2006 this april is from the international center of finance at yale university wharton school pennsylvania and insead 1 abstract in markets where customers care about firm survival strong power can have detrimental implications on performance by affecting likelihood that will be acquired we use framework firms choose their level after comparing costs takeover vulnerability ie loss with synergistic benefits an acquisition generates two testable it optimal to competitive second link between competition stronger when number industry lower using data corporate charter find indeed concentrated industries fewer additionally concentration
