The Motivation and Consequences of Golden Parachute Provisions: A Case Study of TBEA Co., Ltd.
The paper examines the motivation and consequences of Golden Parachute (GP) contracts in Tees the context of TBEA, a Chinese company whose GP payment was 1,000 times executive annual salary and which rescinded its GP provision in 2019.We find that for TBEA, whose ownership is dispersed, anti-takeover was the main motivation for the adoption of GPs,