Merger decisions and executive stock ownership in acquiring firms

Wilbur Lewellen, Claudio Loderer, Ahron Rosenfeld

Research output: Contribution to journalArticlepeer-review

171 Scopus citations


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
Issue number1-3
StatePublished - 1985

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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