This paper's regression analyses from a sample of 261 firms that adopt
ed 486 antitakeover provisions (supermajority, classified boards, fair
-price, reduction in cumulative voting, anti-greenmail and poison pill
s) in the 1984-88 period indicate that the negative market reactions t
o antitakeover provisions vary depending on firms' board structures. T
his paper's empirical evidence indicates that while separating the pos
itions of CEO and chairperson of the board reduces the negative effect
, increased outsider representation increases negative marker reaction
s. (C) 1997 by John Wiley & Sons, Ltd.