Management entrenchment and the cost of equity capital

Denton Collins, Henry Huang

Research output: Contribution to journalArticlepeer-review

15 Scopus citations


This paper investigates the effect of management entrenchment on the cost of equity capital. Using the Bebchuk et al. (2009) entrenchment index data from 1989 through 2002, and using mainly the Ohlson and Juettner-Nauroth (2005) method to estimate the cost of capital, we find that increases (decreases) in management entrenchment are associated with increases (decreases) in costs of equity capital.

Original languageEnglish
Pages (from-to)356-362
Number of pages7
JournalJournal of Business Research
Issue number4
StatePublished - Apr 2011


  • Cost of capital
  • Governance risk
  • Management entrenchment


Dive into the research topics of 'Management entrenchment and the cost of equity capital'. Together they form a unique fingerprint.

Cite this