The Effect of leadership stability, agency problems, and animal spirits on M&A outcomes in Australia

Nigel S. Garrow

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

Abstract

Mergers and acquisitions continue to be value destroying for many acquiring firm shareholders. Lack of continuity of tenure, agency problems and animal spirits in the acquiring and acquired firms may contribute to this loss of value. This study examines acquisitions in Australia between 1990 and 2006, when the roles of chairman and chief executive were performed by different people in the acquiring firm. The study finds that the period of joint tenure, when the Chairman and CEO have been in their respective roles together, is a statistically significant contributor to acquiring firm shareholder value during the three year period following completion of the acquisition. Agency problems and animal spirits are also found to be important influences on M&A outcomes.
Original languageEnglish
Title of host publicationProceedings of the 24th ANZAM Conference
Subtitle of host publicationmanaging for unknowable futures
EditorsBruce Gurd
PublisherAustralian and New Zealand Academy of Management
Pages1-16
Number of pages16
ISBN (Print)1877040827
Publication statusPublished - 2010
EventAustralia and New Zealand Academy of Management Conference (24th : 2010) - Adelaide
Duration: 8 Dec 201010 Dec 2010

Conference

ConferenceAustralia and New Zealand Academy of Management Conference (24th : 2010)
CityAdelaide
Period8/12/1010/12/10

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