The wave of mergers-acquisitions in the 1990s in the USA: reading the results using agency theory

During the 1990s merger wave in the United States, few gains and some important losses were observed for bidding firms. These mitigated results may stem from the agency relationship binding shareholders and managers of acquiring firms with dispersed shareholdings. This paper proposes a panorama of m...

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Bibliographic Details
Published in:Revue française de gestion 2010-05, Vol.36 (204), p.53-68
Main Authors: Navatte, Patrick, Schier, Guillaume
Format: Article
Language:fre
Subjects:
Acquisitions
Agency
Economic activity
Governance
Mergers
Stockholders
U.S.A
Online Access:Get full text
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Summary:During the 1990s merger wave in the United States, few gains and some important losses were observed for bidding firms. These mitigated results may stem from the agency relationship binding shareholders and managers of acquiring firms with dispersed shareholdings. This paper proposes a panorama of managerial motives of both acquirer and target firms, which drive to decisions not in favour of shareholder wealth, and highlights the relative insufficient power of the governance mechanisms to align both stakeholders interest. Some guidelines for future research are also proposed. [PUB ABSTRACT] Reproduced by permission of Bibliothèque de Sciences Po
ISSN:0338-4551