M&A Incentives and Outcomes: Evidence from the Mutual Fund Industry

Abstract

This paper tests hypotheses about the incentives of acquirers and targets in the merger market. The …rst hypothesis of this paper is that some …rms pursue acquisitions that do not maximize pro…ts. The second hypothesis is that targets try to avoid being taken over by acquirers that do not maximize pro…ts. I test these hypotheses using data on acquisitions… (More)

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