Synergy, Managerialism or Hubris? An Empirical Examination of Motives for Foreign Acquisitions of U.S. Firms

By A. Seth, K. P. Song, R. Pettit. 2000

411 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/27a45fc4f11cf5d62c5beb3dca351c6984e56e01

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Citations in the corpus

A Signaling Theory of Acquisition Premiums: Evidence from IPO Targets (2012, background): “Researchers have also argued that acquirers are particularly prone to information asymmetries in cross-border acquisitions (e.g., Kang & Kim, 2010; Moeller & Schlingemann, 2005; Seth et al., 2000).”
CEO Hubris and Firm Risk Taking in China: The Moderating Role of Managerial Discretion (2010, background): “Seth, Song, and Pettit (2000) tested the idea that cross-border takeovers were driven by top executives’ hubris, although they did not measure CEO hubris directly.”
The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda (2020, background): “Seth, Song, and Pettit (2000) and Seth (1990a, 1990b) suggest that rational motives aiming to benefit the acquirer’s shareholders can be traced back to the M&A strategy, which is determined by the overarching corporate strategy.”
Mergers & acquisitions research: A bibliometric study of top strategy and international business journals, 1980–2010 (2014, background): “The managerial or hubris hypothesis (Hayward & Hambrick, 1997) contrasts with the assumption that managers are economically rational when deciding to pursue an M&A. Managers may undertake M&As to maximize their own utility at the expense of the shareholders (Seth et al., 2000).”
Critical success factors through the Mergers and Acquisitions process:revealing pre- and post- M&A connections for improved performance (2013, background): “Seth, Song, and Pettit (2000) claim that the evaluation of target firms in situations of crossborder mergers needs to be handled even more carefully, since, on average, there is greater information asymmetry between companies from different countries than in domestic situations.”
The Origin of Failure: A Multidisciplinary Appraisal of the Hubris Hypothesis and Proposed Research Agenda (2014, background): “For instance, Seth, Song, and Pettit (2000) confirmed that the hubris hypothesis coexists with the synergy hypothesis in explaining foreign acquisitions of U.S. firms; using takeover battles to infer overpayments and synergies, Hietala, Kaplan, and Robinson (2003) concluded that takeover deals are…”
VALUE CREATION AND DESTRUCTION IN CROSS-BORDER ACQUISITIONS: AN EMPIRICAL ANALYSIS OF FOREIGN ACQUISITIONS OF U.S. FIRMS (2002, background): “The research indicates that the average crossborder acquisition reflects an increase of about 7.5 percent in the value of the combined firms relative to their preacquisition value (see Eun , Kolodny, and Scheraga, 1996; Seth, Song, and Pettit, 2000).”
Do foreign investors exhibit a corporate governance disadvantage? An information asymmetry perspective (2010, neutral): “For example, Sussman and Zeira (1995) present a model in which monitoring costs that banks face increase with the distance from the firm because of extra communication costs or transportation costs.”