Aspects of acquirer behaviour in Australian mergers and acquisitions

Nigel Garrow, Thomas Valentine

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. The consequences of this value destruction can be far reaching for stakeholders such as pension funds. The assumption of a rational and efficient market does not explain some aspects of an acquirer’s offer. This paper examines acquisitions in Australia between 1990 and 2006.The behavioural characteristics of the acquirer such as animal spirits, hubris, and narcissism may provide an explanation for an acquirer’s offer, and hence M&A value destruction. Good corporate governance practice including greater transparency to stakeholders can help in addressing these behavioural factors.
Original languageEnglish
Title of host publicationProceedings of the 26th ANZAM Conference 2012
Subtitle of host publicationmanaging for volitility and instability
Place of PublicationPerth
PublisherAustralian and New Zealand Academy of Management
Pages1-14
Number of pages14
ISBN (Print)9780987415806
Publication statusPublished - 2012
EventAustralian and New Zealand Academy of Management Conference (26th : 2012) - Perth
Duration: 5 Dec 20127 Dec 2012

Conference

ConferenceAustralian and New Zealand Academy of Management Conference (26th : 2012)
CityPerth
Period5/12/127/12/12

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Keywords

  • agency
  • stakeholders
  • board effectiveness
  • corporate governance

Cite this

Garrow, N., & Valentine, T. (2012). Aspects of acquirer behaviour in Australian mergers and acquisitions. In Proceedings of the 26th ANZAM Conference 2012: managing for volitility and instability (pp. 1-14). Perth: Australian and New Zealand Academy of Management.