BETRIEBSWIRTSCHAFTLICHES FORSCHUNGS-SEMINAR:

Am Fr., 16.1.1998 von 15.30-17.00 haelt im HS 8 des Betriebswirtschaftlichen Zentrums, Universitaet Wien, Bruennerstrasze 72, 1210 Wien,

Prof. Dennis C. Mueller (Universitaet Wien)

einen Vortrag ueber seine gemeinsame Arbeit mit Mark L. Sirower (New York University),

''The Causes of Mergers: Tests Based on the Gains to Acquiring Firms' Shareholders and the Size of Premia''.

Eine Kopiervorlage der Papers liegt - soweit vorhanden - im Sekretariat von Prof. Zechner am Betriebswirtschaftszentrum auf.

------------ Abstract:

Unfortunately, despite the large number of event studies of mergers that have been undertaken, considerable disagreement among researchers still exists as to whether mergers increase the value of the assets of the merging firms, and if so why. Most event studies measure the average returns to the acquired and the acquiring companies' shareholders separately, and based on these averages conclude either that the mergers increase wealth, or that they reduce it. From this the authors go on to claim support either for an hypothesis about how mergers increase efficiency, or for one that claims they do not. Very few studies have made use of the distribution of gains and losses across the two samples of firms, and their relationship to one another to test the various hypotheses about why mergers occur, and their consequences. This approach is be followed in this paper.

Four hypotheses as to why mergers occur are tested with data for 168 mergers from 1978 through 1990: (1) the market-for-corporate-control hypothesis, (2) the synergy hypothesis, (3) the managerial discretion hypothesis, and the hubris hypothesis. Our methodology is to divide our sample into subsamples within which the different hypotheses are more likely to find support, and then test the predictions. We find the strongest support for the managerial discretion and hubris hypotheses.

------------- Informationen ueber die Vortraege des betriebswirtschaftlichen Forschungsseminars: <<http://www.bwl.univie.ac.at/bwl/fiwi1/teaching/dipldiss/vortrag.htm =========================================================================