search query: @author O'Neill, H. M. / total: 5
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| Author: | Lubatkin, M. O'Neill, H. M. |
| Title: | Merger strategies and capital market risk |
| Journal: | Academy of Management Journal
1987 : DEC, VOL. 30:4, p.665-684 |
| Index terms: | CAPITAL MERGERS RISK |
| Language: | eng |
| Abstract: | Literature suggests relationship between strategic decisions about mergers and various components of risk. A large group of acquiring forms are tested, grouped by the degree of relatedness of their mergers, and using three measures of risk, unsystematic, systematic, and total risk. The findings show that risk reduction may be a valid rationale for mergers, but not for the reasons often cited. On the average, it is found that all types of mergers tend to be associated with significantly increased levels of unsystematic and total risk. Related mergers, however, can achieve a significant reduction in systematic and total risk that stockholders cannot achieve on their own. Such influences as changing market conditions and leverage decisions are taken into account. |
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