https://scholars.lib.ntu.edu.tw/handle/123456789/414553
Title: | The Impact of Market-Nurtured Optimism on Mergers: | Authors: | Shu, Pei Gi Yeh, Yin Hua SHEAN-BII CHIU Wang, Li Hui |
Keywords: | corporate governance | mergers | Overconfidence;corporate governance; mergers; Overconfidence | Issue Date: | 1-Sep-2013 | Journal Volume: | 16 | Journal Issue: | 3 | Source: | Review of Pacific Basin Financial Markets and Policies | Abstract: | We create a novel measure of market-nurtured optimism in that managers become more optimistic if the market had responded more favorably, and to a larger extent to positive earnings surprises, than to negative earnings surprises. These market-nurtured managers are prone to engage in value-destructive mergers. The inclination is further reinforced by abundant internal cash. In contrast, a good governance structure mitigates the odds of engaging in mergers and the detrimental effect associated with mergers. The acquisitions launched by overconfident managers are associated with lower market value. © 2013 World Scientific Publishing co.and Center for Pacific Basin Business, Economics and Finance Research. |
URI: | https://scholars.lib.ntu.edu.tw/handle/123456789/414553 | ISSN: | 02190915 | DOI: | https://api.elsevier.com/content/abstract/scopus_id/84884881300 10.1142/S0219091513500215 |
SDG/Keyword: | corporate strategy; governance approach; merger; optimization |
Appears in Collections: | 財務金融學系 |
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