Merger decisions and executive stock ownership in acquiring firms

Wilbur Lewellen; Claudio Loderer; Ahron Rosenfeld

doi:10.1016/0165-4101(85)90038-2

Merger decisions and executive stock ownership in acquiring firms

Wilbur Lewellen, Claudio Loderer, Ahron Rosenfeld

Department of Management

Research output: Contribution to journal › Article › peer-review

169 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 language	English
Pages (from-to)	209-231
Number of pages	23
Journal	Journal of Accounting and Economics
Volume	7
Issue number	1-3
DOIs	https://doi.org/10.1016/0165-4101(85)90038-2
State	Published - 1985

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1016/0165-4101(85)90038-2

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title = "Merger decisions and executive stock ownership in acquiring firms",

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 ofown-company share ownership help align the interests of stockholders and management.",

author = "Wilbur Lewellen and Claudio Loderer and Ahron Rosenfeld",

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AB - 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 ofown-company share ownership help align the interests of stockholders and management.

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Merger decisions and executive stock ownership in acquiring firms

Abstract

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