Add to ORKGOverpayment for acquisitions can occur if managerial hubris leads bidders to overestimate target stand-alone values under their control. We provide a unique test of this phenomenon by analyzing whether bidders overpay for founder CEO targets because they overestimate their ability to replicate the value of the founder CEOs ’ firm-specific human capital post-acquisition. We show that the founder CEOs ’ human capital is valuable and embedded in the ex-ante targets ’ value and is, economically and statistically, negatively associated with bidder gains and synergy returns. Our findings are consistent with bidders’ overestimating the value of founder CEO targets as stand-alone firms under their control
In the context of large acquisitions, we provide evidence on whether firms have target capital struc...
Even failed takeovers can identify undervalued target firms. We find that compared to financial bidd...
We examine the extent to which bidders’ stock returns at acquisition announcements reflect the finan...
markdownabstract__Abstract__ Overpayment for acquisitions can occur if managerial hubris leads bi...
Gaining access to technologies, competencies, and knowledge is observed as one of the major motives ...
Scholars have consistently identified CEO hubris as a significant factor in acquisitions because the...
Prior work has established that entrenched managers make value-decreasing acquisitions. In this stud...
We study if a CEO’s equity-based compensation affects the expected value generation in takeovers. Wh...
We examine shareholders' wealth effects (both in the short- and the long-run) of UK frequent bidders...
This study investigates the retention of target CEOs in the aftermath of acquisitions by comparing t...
A much debated issue in corporate finance is how idiosyncratic managerial attributes affect firm val...
This study investigates the retention of target CEOs in the aftermath of acquisitions by comparing ...
We test the implications of the Misvaluation hypothesis (Shleifer and Vishny, 2003) for a large samp...
A much debated issue in corporate finance is how idiosyncratic managerial at-tributes affect firm va...
We examine the difference between financial and strategic bidders in exploiting target underpricing....
In the context of large acquisitions, we provide evidence on whether firms have target capital struc...
Even failed takeovers can identify undervalued target firms. We find that compared to financial bidd...
We examine the extent to which bidders’ stock returns at acquisition announcements reflect the finan...
markdownabstract__Abstract__ Overpayment for acquisitions can occur if managerial hubris leads bi...
Gaining access to technologies, competencies, and knowledge is observed as one of the major motives ...
Scholars have consistently identified CEO hubris as a significant factor in acquisitions because the...
Prior work has established that entrenched managers make value-decreasing acquisitions. In this stud...
We study if a CEO’s equity-based compensation affects the expected value generation in takeovers. Wh...
We examine shareholders' wealth effects (both in the short- and the long-run) of UK frequent bidders...
This study investigates the retention of target CEOs in the aftermath of acquisitions by comparing t...
A much debated issue in corporate finance is how idiosyncratic managerial attributes affect firm val...
This study investigates the retention of target CEOs in the aftermath of acquisitions by comparing ...
We test the implications of the Misvaluation hypothesis (Shleifer and Vishny, 2003) for a large samp...
A much debated issue in corporate finance is how idiosyncratic managerial at-tributes affect firm va...
We examine the difference between financial and strategic bidders in exploiting target underpricing....
In the context of large acquisitions, we provide evidence on whether firms have target capital struc...
Even failed takeovers can identify undervalued target firms. We find that compared to financial bidd...
We examine the extent to which bidders’ stock returns at acquisition announcements reflect the finan...