The hubris hypothesis of corporate takeovers

Roll, R. (1986). The hubris hypothesis of corporate takeovers. Journal of Business, 59(2), 197-216.

Type

Journal article

Intellectual base

Primary research

Year

1986

Link

https://doi.org/10.1086/296325matched

Cited from

information_theory

Cited by

1 citation across 1 artifact.

Each citation links to the sentence it supports in the citing article.

Primes

• Winner's Curse
  • This supplies a structural explanation for the persistent empirical finding that acquirers in competitive takeover contests earn poor post-deal returns, the "diminishing returns to bidding" that corporate-finance scholars have documented across decades of merger waves.

    This sourceFoundational corporate-finance argument that the acquirer who outbids all rivals is the party with the highest positive valuation error, supplying a structural explanation for systematically poor post-deal acquirer returns in competitive takeover contests.

Verification

This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.

Registry ID ref:0909d7badc15 · see in the full table