I propose a model of mergers in which synergies and CEO power play a crucial role. A merger is modeled as a bargaining game between the acquiring and the target board of directors, with the gains from a merger divided according to the generalized Nash bargaining solution. The model's implications are consistent with the available empirical evidence on stock returns, and yield some new untested implications that are mainly related to the relationship between CEO power, corporate governance, and mergers. Finally, the model sheds light on the relationship between aggregate merger activity, synergies, and CEO power. (JEL: G 34, D 86, L 21, D 21) * I would like to express my gratitude to two anonymous referees and Elmar Wolfstetter, whose comments helped me improve several parts of the paper. I also acknowledge the support of Fondecyt Project 1060207.The timing of the model is as follows: The board and CEO bargain over the CEO's compensation. This is determined following a generalized Nash bargaining procedure; that is, the board and the CEO agree on an incentive contract that maximizes the product of their surpluses from trade. Then an organizational form is selected by the board of directors. Specifically, board members decide whether the units should remain as standalone units (nonintegration; i.e., there are two CEOs) or merge into one firm (integration; i.e., there is one CEO). 1 At this stage, the board of the acquiring firm and that of the target firm bargain over the price of the target. This is also done with a generalized Nash bargaining procedure; that is, boards agree on a price that maximizes the product of their surpluses from trade. 2 If a merger occurs, the board of the acquiring firm and its CEO negotiate a new compensation contract. When firms remain independent, each CEO decides whether or not to behave; when they integrate, the CEO not only chooses whether or not to behave, but also selects the implementation strategy. Finally, payoffs are realized and compensation takes place.Board members' preferences are crucial to the outcome. I assume that the board of directors is composed of both inside and outside members. Inside members are different from outside members in that the former are not only concerned about firm value, but also about CEO compensation. This assumption is based on the empirical evidence and casual observation showing that managers of large corporations influence boards' decisions and that boards do not consider negative stock market reactions to those decisions (e.g., acquisition announcements) to be definitive indicators of long-run value losses.The share of inside members is interpreted as the level of CEO power. Furthermore, following HERMALIN AND WEISBACH [1998], I assume that the preferences of individual members can be aggregated in such a way that the board acts as if it has a single utility function that corresponds to the weighted sum of members' utility functions, where the weights are given by the share of the board that each type of member represents. Thus, CEO power r...
Students in Higher Educational Institutions (HEIs) have undergone a drastic change in the past decades. The HEIs have witnessed expansion and the younger population are more socially and culturally diverse. There has also been a sharp rise in the number of International students. In the Global Pandemic, the students in HEIs have experienced a serious catastrophe. In this purview, it is vital to discuss about the difculties faced by the students, the issues and challenges they came across, the student welfare services and its encouragement towards students' academic and psycho-social wellbeing. Secondary research design is adopted in the study.
Background: Student Welfare is an integral part of the Educational system. It takes care of the physical, mental, academic, non-academic well-being of the students on campus. Higher Educational Institutions essentially cater to the young population above 16 years and they constitute a resourceful and a vibrant population of the nation. If this period of life is shaped and moulded appropriately and holistically, they turn out to be an asset of the country or otherwise a liability. Objectives: The aim of this study is to understand and explore the nature and kind of student welfare services prevalent in the Higher Educational Institution in Puducherry. It also comprehends the activities, policies and practices as part of Student Welfare Services in Higher Educational Institution in Puducherry. Nature and Study design: The study is Quantitative, and Descriptive design is adopted. Materials and Methods: The participants (n=57) were selected randomly from one college, nal year undergraduate male and female students of Puducherry district of Puducherry UT were the universe. Self-Administered Questionnaire was used to collect the data. The students were assured of condentiality and anonymity and were requested to answer the questions truthfully. Results: This paper addresses the initial results from the pilot study of the research titled “A Study of the Student Welfare Services prevalent in Higher Educational Institutions in Union Territory of Puducherry” funded by ICSSR-IMPRESS Research Project (Ministry of Human Resource Development, Delhi). The study contributes to the existing knowledge on the prevalence of student welfare services in (HEIs) in Puducherry district. Conclusions: The study comes up with the nature of student welfare services that are prevailing in the Higher Educational Institution and how it adds to the student's overall wellbeing. The results enhance our understanding of the nature of other HEIs and provide recommendations on the same. Very few studies have been undertaken in this realm and this will certainly be an addition to the already existing literature related on the same
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