We study the accounting and stock performance of 4,547 US acquisitions during 1989 and 2008. We categorise acquisitions into four types based on the four possible combinations of positive or negative abnormal stock performance and abnormal accounting performance. First, we compare the bidder, bid and target characteristics across the four types of acquisitions. We find significant differences.
Second, with the help of existing theories we explain these differences in bidder, bid and target characteristics by differences in the acquisition motives.
Using U.S. state legislatures’ staggered adoption of constituency statutes over a 24-year period (1984–2007) as a quasi-natural experiment, we show that greater stakeholder orientation significantly increases firms’ inventory efficiency. Further...Read more
We examine the link between CEO overconfidence and speed of adjustment (SOA) of cash holdings for listed US firms. We find a negative effect of overconfident CEOs on the SOA. Further, CEO overconfidence increases the asymmetry in the SOA between...Read more
Has corporate law and its bundles of fiduciary obligations become irrelevant? Over the last thirty years, the American public corporation has undergone a profound metamorphosis, transforming itself from a business with dispersed ownership to one...Read more
We argue that CEOs have diﬀerent attitudes toward the ﬁrm’s stakeholders and that these diﬀerences in attitudes aﬀect the ﬁrm’s decision making. We hypothesize that these diﬀerences stem from diﬀerences in political ideology: Liberal CEOs, as...Read more