Misplaced Pages

Managerial hubris

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Bidding Firms

Managerial hubris is the unrealistic belief held by managers in bidding firms that they can manage the assets of a target firm more efficiently than the target firm's current management.

Managerial hubris is one reason top managers, e.g., CEOs and board directors, may choose to invest in a merger that on average generates no profits.

See also

References

  1. Malmendier, Ulrike; Tate, Geoffrey (2008). "Who makes acquisitions? CEO overconfidence and the market's reaction". Journal of Financial Economics. 89 (1): 20–43. doi:10.1016/j.jfineco.2007.07.002. S2CID 12354773.
  2. Twardawski, Torsten; Kind, Axel (2023). "Board overconfidence in mergers and acquisitions". Journal of Business Research. 165 (1). doi:10.1016/j.jbusres.2023.114026.
  3. Jay B. Barney and William S. Hesterly (2008). Strategic Management and Competitive Advantages. Pearson Prentice Hall. pp. 380. ISBN 0-13-613520-X.
Categories:
Managerial hubris Add topic