Learning, Hubris and Corporate Serial Acquisitions
نویسندگان
چکیده
منابع مشابه
Corporate serial acquisitions : An empirical test of the learning
Recent empirical papers report a declining trend in the cumulative abnormal return (CAR) of acquirers during an M&A program. Does this necessarily imply that acquiring CEOs are infected by hubris and are not learning from previous mistakes? We first confirm the existence of this declining trend on average. However, we find a positive CAR trend for CEOs likely to be infected by hubris, which is ...
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In this paper, we study some of the conditions under which " superstitious learning " phenomena (Levitt and March, 1988) become problematic in organizations, and we identify a set of boundary conditions for these effects. In particular, we argue that the tacit accumulation of experience might exacerbate the problem, but that the heterogeneity in the stock of prior experience, as well as more de...
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I lovingly dedicate this dissertation to my wife, Yanfang Duan, who accompanied me on this long, arduous journey and freed me from every concern; to my daughter, Caroline, who brought me enormous, invaluable happiness; and to my parents for their constant, unwavering support. v Acknowledgements This dissertation would not have been possible without help and support from many established scholar...
متن کاملHubris , Learning , and M & A
Recent empirical results have found a declining trend in the cumulative abnormal return (CAR) of acquiring firms during an M&A program. Should one conclude that CEOs undertaking M&As are infected by hubris and unable to learn? We first confirm the existence of this declining trend. However, we find a positive CAR trend for CEOs most likely to be infected by hubris and a negative (and significan...
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Agency theories predict that firms acquire and diversify through acquisitions as they grow older and exhaust their internal growth opportunities, and that they do so for the benefit of managers rather than shareholders. In contrast, we find that acquiring firms are firms with better growth opportunities and performance irrespective of their lifecycle stage. While younger firms acquire more than...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2007
ISSN: 1556-5068
DOI: 10.2139/ssrn.721882