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.
|Title of host publication||Proceedings of the 26th ANZAM Conference 2012|
|Subtitle of host publication||managing for volitility and instability|
|Place of Publication||Perth|
|Publisher||Australian and New Zealand Academy of Management|
|Number of pages||14|
|Publication status||Published - 2012|
|Event||Australian and New Zealand Academy of Management Conference (26th : 2012) - Perth|
Duration: 5 Dec 2012 → 7 Dec 2012
|Conference||Australian and New Zealand Academy of Management Conference (26th : 2012)|
|Period||5/12/12 → 7/12/12|
- board effectiveness
- corporate governance
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.