What you have read in brigham and ehrhardt

Assignment Help Business Management

Reference no: EM133478381

Discussion Post: Management Replacement during Mergers & Acquisitions

A review of the literature on mergers and acquisitions, according to Brigham & Ehrhardt (2022), suggests three (3) main motives behind M&A: two economic and one non-economic. The economic motives are efficient (target) management, synergy, and non-economic hubris. Based on agency theory, proponents of the inefficient target management motive argue that takeovers offer shareholders a mechanism to replace managers who carry out non-value-maximizing activities with managers who will perform better.

Based on what you have read in Brigham & Ehrhardt (2022), doe's takeover offers shareholders any mechanism for management replacement during mergers and acquisitions? Brigham & Ehrhardt (2018) extend the argument further in their managerial competition model that sees competing management teams as the primary activists. In their model, the take over the market (or market for corporate control) is the view as the market in which alternative managerial teams compete for the right to manage corporate resources.

Reference no: EM133478381

Questions Cloud

Do you think agencies have been given too many powers : Do you think agencies have been given too many powers, for example, the FCC, do you think there should be more judicial review of these entities?

What are the major requirements of an enforceable contract : What are the major requirements of a valid and enforceable contract in Canada? Remember, one of the group's members is a 16-year-old boy

Discuss the concept of keystone species : Describe the concept of ecological niche specialization and its implications for species survival and competition.

Discuss the legal position of x and the building inspector : discovered that he had locked the municipal building inspector in the garage. Discuss the legal position of X and the building inspector

What you have read in brigham and ehrhardt : What you have read in Brigham & Ehrhardt (2022), doe's takeover offers shareholders any mechanism for management replacement during mergers and acquisitions?

What is the structure and function of dna : What is the structure and function of DNA, and how does it transmit genetic information from one generation to the next?

What is the importance of this health law and ethics : What is the importance of this Health Law and Ethics for your professional development. Course assignments were relevant to course objectives.

Explaining what happened and the actions company is taking : Explaining what happened and the actions the company is taking. If you have questions about either of these documents, please consult your instructor.

What organizational method that i would recommend : How would I determine what organizational method that I would recommend and Would I use an existing tool or look for a new one

User Account

All Pages