search query: @author Motta, M. / total: 10
reference: 8 / 10
| Author: | Oller, R. Motta, M. |
| Title: | Managerial incentives for takeovers |
| Journal: | Journal of Economics and Management Strategy
1996 : WINTER, VOL. 5:4, p. 497-514 |
| Index terms: | ECONOMICS MANAGEMENT STRATEGY |
| Language: | eng |
| Abstract: | The paper studies managerial incentives in a model where managers choose product market strategies and make takeover decisions. The equilibrium contract includes an incentive to increase the firm's sales, under either quantity or price competition. This result contrasts with previous findings in the literature , and hinges on the fact that when managers are more aggressive, rival firms earn lower profits and thus are willing to sell at a lower price. However, as a side effect of such a contract, the manager might undertake unprofitable takeovers. |
SCIMA