Reward and recognition is one of the most important factors to motivate employees. Over the many decades the reward and recognition system has been adopted by numerous organizations to motivate their employees to retain for long term. There are myriad ways by which employees can be motivated....

We estimate operating synergies from a unique hand-collected dataset on management's forecasts of merger incremental cash flows. We find that forecasted synergies induce acquirers to make leverage-increasing acquisitions. Institutional investors and bidders' credit rating enhance that relation...

We investigate the impact of debt covenants on acquisition characteristics. We find that acquirers with covenants pay lower merger premiums, make more focused acquisitions, and engage in acquisitions with higher synergy gains and higher acquirer returns around deal announcement, relative to...

We find, in a sample of 7,581 merger offer announcements from 1990 to 2013, shareholders of 1,283 (or 17%) target firms responded to the offer with negative market returns. These investors were disappointed at the offer, despite the price premium. To explain their disappointment, one must...

I study a sample of 336 M&A deals to investigate the effect of managements' estimate of synergy on the reservation price and the payment method. I find that synergy does not explain the premium paid implying that it may have been announced to induce shareholders to endorse the deal. Acquiring...

We examine how capital structure considerations affect acquisition pricing and valuation. We find that debt capacity improvement is value-enhancing for all acquirers when they gradually reveal their growth opportunities to the market. This is reflected in the long-run stock market returns, both...

This study proposes a new direct method of measuring managerial overconfidence using an acquisition setting. CEOs with significantly higher synergies forecast error (SFE), measured as the deviation between acquisition forecasted operating synergies and actual realized operating synergies, are...

This study is motivated by highly concentrated ownership, the relatively large government stake in listed firms in the GCC (Gulf Cooperative Council) region, and the rapid stock market development and developing investor protection environment. The results point to heterogeneity in governance...

The literature on multiple acquirers is confined to a few studies, none of which compares the performance of single and multiple acquirers in the US market. This study considers shareholder returns for a large sample of 16,221 US takeovers between 1985 and 2004. It finds that single acquirers...

Institutional investors tend to accumulate the shares of firms that announce acquisitions. The tendency to accumulate shares is stronger when the acquirer discloses synergy forecasts, and it is especially strong when the disclosed synergies are higher. This evidence is consistent with the idea...