Malmendier and Tate (2008) argue that mergers should increase shareholder wealth if CEOs act in the interest
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Question:
Malmendier and Tate (2008) argue that mergers should increase shareholder wealth if CEOs act in the interest of their shareholders. Yet, acquiring shareholders lost over $220 billion at the announcement of merger bids from 1980 to 2001 (Moeller et al., 2005). (Malmendier and Tate (2008) attribute this outcome to:
Group of answer choices
a. tax inefficiencies due to a merger
b. lenders cutting off credit lines due to the merger
c. CEO overconfidence
d. accounting irregularities when reporting earnings of the combined entity
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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