This study examined the impact of the reform of takeover regulations on management resource allocation. It was called as Corporate Governance Evidence from Strategic Emphasis: Evidence from India. It analysed data of Indian companies for 2000-24, and measured value appropriation through ad spending and value creation through R&D investment over the long term. The findings indicate that the reduction in hostile takeover threats following the India's overhaul of the takeover regulations in 2011 was correlated with an increase in advertising expenditures. No increase in research and development funds happened as the evidence increased. This raises concerns that in a less take-over-driven market, managers might be tempted to short-circuited profit from making market moves rather than investing in long-term innovations.
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