• DOI:10.1086/296325
Corpus ID: 53399844

The Hubris Hypothesis of Corporate Takeovers

@article{Roll1986TheHH,
  title={The Hubris Hypothesis of Corporate Takeovers},
  author={R. Roll},
  journal={The Journal of Business},
  year={1986},
  volume={59},
  pages={197-216}
}

R. Roll

Published 1986

Economics

The Journal of Business

Despite many excellent research papers, we still do not fully understand the motives behind mergers and tender offers or whether they bring an increase in aggregate market value. In their comprehensive review article (from which the above quote is taken), Jensen and Ruback (1983) summarize the empirical work presented in over 40 The hubris hypothesis is advanced as an explanation of corporate takeovers. Hubris on the part of individual decision makers in bidding firms can explain why bids are… CONTINUE READING

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