search query: @author Morck, R. / total: 5
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| Author: | Morck, R. Shleifer, A. Vishny, R.W. |
| Title: | Do managerial objectives drive bad acquisitions ? |
| Journal: | Journal of Finance
1990 : MAR, VOL. 45:1, p. 31-48 |
| Index terms: | MERGERS BUSINESS APPRAISAL BIDDING STOCK MARKETS USA RETURN ON INVESTMENT |
| Language: | eng |
| Abstract: | In a sample of 326 USA acquisitions between 1975 and 1987, three types of acquisitions have systematically lower and predominantly negative announcement period returns to bidding firms. The returns to bidding shareholders are lower when their firm diversifies, when it buys a rapidly growing target, and when its managers performed poorly before the acquisitions. These results suggest that managerial objectives may drive acquisitions that reduce bidding firms' values. |
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