- Subject index
The Handbook of 21st Century Management provides authoritative insight into the key issues for students in college or corporate courses with a particular emphasis on the current structure of the topic in the literature, key threads of discussion and research on the topic, and emerging trends. This resource is useful in structuring exciting and meaningful papers and presentations and assists readers in deciding on management areas to take elective coursework in or to orient themselves towards for a career. Indeed, familiarity with many of the topics in this Handbook would be very useful in job interviews for positions in business.
Chapter 34: The Merger Paradox: Determinants and Effects
The Merger Paradox: Determinants and Effects
Firms that are quoted on the stock markets of Western industrialized economies undertake hundreds of acquisitions (or mergers) every year. Sometimes, however, these hundreds rapidly grow into thousands. Curiously, the lion's share of these acquisitions—depending on the industry, roughly between 65% and 85%—repeatedly fail to create shareholder value. This is the so-called “merger paradox”: If most of these acquisitions fail, why then do they at times remain so popular? A large part of this chapter will be devoted to answering this question. We will discuss several theories of the firm such as theories that try to establish the drivers of firm behavior—in which executives play a dominant role—in order to see whether they can ...