No Surprise Here: Poison Pills Negatively Correlated to Shareholder Returns

As of the end of March 2008, some 460 Japanese companies had introduced poison pill anti-takeover measures. Of the 110 companies with market cap over JPY10 billion, some 66 or 55% had ROEs (return on equity) below the market average of 10%, while 24 were valued below nominal break-up value (PBR of 1.0X).