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
    3,371 Citations
    Hubris amongst Japanese bidders
    • 10
    • Highly Influenced
    • PDF
    Merger Motives and Target Valuation: A Survey of Evidence from CFOs
    • 155
    Chapter 15 – Corporate Takeovers*
    • 68
    GROUPTHINK WITHIN BOARDS OF DIRECTORS
    • PDF
    Takeover Announcements, Open Offers, and Shareholders' Returns in Target Firms
    • 30
    • Highly Influenced
    Corporate Takeovers
    • 197
    • Highly Influenced
    • PDF

    References

    SHOWING 1-10 OF 36 REFERENCES
    Valuation Consequences of Cash Tender Offers
    • 129
    Horizontal Mergers, Collusion, and Stockholder Wealth
    • 925
    Merger proposals, management discretion and stockholder wealth
    • 611
    • Highly Influential
    Tender offers and stockholder returns: An empirical analysis
    • 504
    The wealth effect of merger activity and the objective functions of merging firms
    • 541