Do Envious CEOs Cause Merger Waves?

• 成果类型: Article
• 署名作者: Goel, Anand M.; Thakor, Anjan V.
• 署名单位: Washington University (WUSTL); DePaul University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhp088
• 发表日期: 2010
• 页码: 487
• 关键词: PRICE-CONCENTRATION RELATIONSHIP; executive-compensation; market valuation; wage dispersion; EQUITY MARKETS; hypothesis; BEHAVIOR; banking; pay; determinants

摘要

We develop a theory which shows that merger waves can arise even when the shocks that precipitated the initial mergers in the wave are idiosyncratic. The analysis predicts that the earlier acquisitions produce higher bidder returns, involve smaller targets, and result in higher compensation gains for the acquirer's top management team than the later acquisitions in the wave. We find strong empirical support for these predictions. The model also generates additional predictions, some of which remain to be tested. (JEL G34)