Work

What Factors Drive Takeovers in Australia

Year: 2010

Type: article

Abstract: We examine the relationships between the wealth changes associated with a takeover announcement to distinguish between three major competing motives¡Xsynergy, hubris, and agency. Empirical tests indicate that the synergy motive is the predominant explanation for the majority of takeovers in Australia; however, the evidence is consistent with the simultaneous presence of hubris in value-creating takeovers. The evidence also suggests agency, not hubris, is the primary motivation for the takeovers which result in value destruction.

Source: International journal of business and economics

Authors: Joshua Porter, Harminder Singh

Institution: Deakin University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1528708515

FWCI: 0.989

Cites: 28

Cited by: 21

Related to: 10