TY  - JOUR
AU  - Morck,Randall
AU  - Shleifer,Andrei
AU  - Vishny,Robert W.
TI  - Do Managerial Objectives Drive Bad Acquisitions?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3000
PY  - 1989
Y2  - June 1989
UR  - http://www.nber.org/papers/w3000
L1  - http://www.nber.org/papers/w3000.pdf
N1  - Author contact info:
Randall Morck
Faculty of Business
University of Alberta
Edmonton, AB  T6G 2R6
CANADA
Tel: 780/492-5683
Fax: 780/492-3325
E-Mail: randall.morck@ualberta.ca

Andrei Shleifer
Department of Economics
Harvard University
Littauer Center M-9
Cambridge, MA 02138
Tel: 617/495-5046
Fax: 617/496-1708
E-Mail: ashleifer@harvard.edu

Robert W. Vishny
Booth School of Business
The University of Chicago
5807 South Woodlawn Avenue
Chicago, IL  60637
Tel: 773/702-2522
Fax: 773/834-1920
E-Mail: Rvishny@gmail.com
M2  - featured in NBER digest on 1989-09-01
AB  - This paper documents for a sample of 327 US acquisitions between 1975 and 1987 three forces that systematically reduce the announcement day return of bidding firms. The returns to bidding shareholders are lower when their firm diversifies, when it buys a rapidly growing target , and when the performance of its managers has been poor before the acquisition. These results are consistent with the proposition that managerial rather than shareholders' objectives drive bad acquisitions.
ER  -