search query: @indexterm MANAGEMENT BEHAVIOUR / total: 173
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| Author: | Kerschbamer, R. |
| Title: | Disciplinary takeovers and industry effects |
| Journal: | Journal of Economics & Management Strategy
1998 : SUMMER, VOL. 7:2, p. 265-306 |
| Index terms: | mergers companies industries management behaviour |
| Language: | eng |
| Abstract: | The article suggests an explanation for two seemingly paradoxical facts in the takeover literature: 1) industry-wide performance failures predict hostile takeovers better than firm-specific ones; 2) gains from a successful bid for a specific firm extend to other firms in the same industry. The phenomenon can be explained by the idea that managers' incentives which base on relative performance evaluation may induce an inefficient industry-wide equilibrium in which all firms perform worse than a value-maximizing firm, but better than what is the industry average. This equilibrium can be destroyed by a takeover. |
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