1989
DOI: 10.1080/00213624.1989.11504870
|View full text |Cite
|
Sign up to set email alerts
|

The Promotional-Financial Dynamic of Merger Movements: A Historical Perspective

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1
1

Citation Types

0
9
0
3

Year Published

1989
1989
2015
2015

Publication Types

Select...
7

Relationship

0
7

Authors

Journals

citations
Cited by 18 publications
(12 citation statements)
references
References 2 publications
(2 reference statements)
0
9
0
3
Order By: Relevance
“…Shleifer and Vishny (2003) propose a model of mergers where stock overvaluation encourages firms to acquire assets using their own stock as currency; if stock overvaluation and overall market peaks tend to coincide, their model provides a ready explanation for merger waves. Du Boff and Herman (1989) also conclude in favor of a strong link between market overvaluation and merger activity, although they do not examine the welfare implications for bidders formally, and ascribe rent-seeking motives for promoters of mergers. More traditionally, Mitchell and Mulherin (1996) argue that mergers result from shocks to an industry's economic, technological, or regulatory environment, and are an efficient way to allocate assets following such shocks.…”
Section: Previous Research On Mergers In Japanmentioning
confidence: 99%
“…Shleifer and Vishny (2003) propose a model of mergers where stock overvaluation encourages firms to acquire assets using their own stock as currency; if stock overvaluation and overall market peaks tend to coincide, their model provides a ready explanation for merger waves. Du Boff and Herman (1989) also conclude in favor of a strong link between market overvaluation and merger activity, although they do not examine the welfare implications for bidders formally, and ascribe rent-seeking motives for promoters of mergers. More traditionally, Mitchell and Mulherin (1996) argue that mergers result from shocks to an industry's economic, technological, or regulatory environment, and are an efficient way to allocate assets following such shocks.…”
Section: Previous Research On Mergers In Japanmentioning
confidence: 99%
“…They also detected a negative impact on research and development expenditures. Du Boff and Herman [1989] found historical as well as current evidence to support their hypothesis that mergers produce not greater efficiency, but much greater fees for their promoters and financiers.…”
Section: Appendixmentioning
confidence: 61%
“…Mergers and acquisitions (and divestitures) became a lucrative business, especially for financial enterprises (Chandler 1990, 624), and more specifically for investment bankers, commercial bankers, pension/mutual fund trustees, money managers/brokers (Brown 1998;Du Boff and Herman 1989). The financialization of the going concern was inescapable.…”
Section: Downloaded By [Nanyang Technological University] At 01:58 20mentioning
confidence: 98%
“…Goodwill includes various factors -trade-marks, copyrights and patents, brand names, and reputation -"that give a differential [pecuniary] advantage to their owners, but they are of no aggregate advantage to the community … they make no part of the wealth of nations" ([1904] 1975, 139-140). That advantage is, in large part, derived from the increasing difference between the stock market value and the real asset value of a corporation, which first required the increasing divergence between industrial and business capital, and which later triggered significant changes in capitalism, such as concentration of ownership, corporatization, conglomeration, securitization, and financialization (see Du Boff and Herman 1989;Wray 2007).…”
Section: The Place Of the Business Enterprise In Veblen's Analysis Ofmentioning
confidence: 99%
See 1 more Smart Citation