Managerial Reputation and Bad Acquisitions: A Note

Managerial reputation could induce managers to make mixed blessing acquisitions for shareholders. From a managerail ability learning model, we show that managers' acquisitions may reduce the firm's solvency unless the acquisition return first-degree stochastic dominates the alternative action return.

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Year of publication:	1997
Authors:	Reboredo, J.C.
Institutions:	Departament d'Economia i Història Econòmica, Universitat Autònoma de Barcelona
Subject:	MANAGEMENT \| ACQUISITIONS

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Series:	UFAE and IAE Working Papers.
Type of publication:	Book / Working Paper
Notes:	9 pages
Classification:	G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; L21 - Business Objectives of the Firm
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005582618