Mergers and managerial rationality
This paper is about mergers and acquisitions. The prompt reflects the argument that if managers are rational then mergers should always lead to an increase in shareholder value. The concepts of agency, forecasting, synergy, post merger underperformance and acquisition premiums are all discussed. There is a conclusion and an introduction.
Merger Activity Due in Large
The past two centuries have been characterized by an increasing amount of merger activity due in large part to the internationalization of trade, the globalization of the transportation industry and innovations in telecommunications. Mergers have been used for a wide range of purposes, including achieving a synergistic effect, breaking up corporations that have become too large and unwieldy, and to help companies expend their market share in other regions. Over time, merger activity tends to assume a pattern of waves that can be attributed to several known factors such as severe economic shock or lax government regulatory polices, but a wide range of other factors have also been shown to contribute to the cyclical pattern of wave mergers, an issue that is the focus of this study. A review of the secondary data provides a basis for the study's conclusions and recommendations presented in the concluding chapter.