A new study from the University of Iowa suggests that managers of small firms better protect their shareholders’ stock value by fending off potential acquisitions by larger firms with overpriced stock.

“Small firms are better guardians of their shareholders’ stock value because their managers have incentive and ability to exercise better judgment in choosing acquisition partners and are less receptive to takeovers from firms with overvalued stock,” says Anand Vijh, professor of finance in the Tippie College of Business, who co-authored the study with Ke Yang of Lehigh University.