Merger decisions and executive stock ownership in acquiring firms

Wilbur Lewellen, Claudio Loderer, Ahron Rosenfeld

Research output: Contribution to journalArticlepeer-review

171 Scopus citations

Abstract

This study supports the proposition that managerial welfare affects merger decisions. The abnormal stock returns experienced by bidder firms, from the time of the announcement of a merger bid through the stockholder approval date, are positively related to the percentage of own-company stock held by the senior management of the bidder. The results suggest that substantial amounts of
own-company share ownership help align the interests of stockholders and management.
Original languageEnglish
Pages (from-to)209-231
Number of pages23
JournalJournal of Accounting and Economics
Volume7
Issue number1-3
DOIs
StatePublished - 1985

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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