Foreign acquisitions and managerial discretion

被引：2

作者：

Yung K.K. ^{[1
]}

机构：

[1] Department of Finance, Old Dominion University, College of Business and Public Administration, Norfolk

来源：

Review of Quantitative Finance and Accounting | 2001年 / 16卷 / 1期

关键词：

Foreign acquisitions; Managerial discretion; Overinvestment; Tobin's Q; Unexpected free cash flow;

D O I：

10.1023/A:1008388307352

中图分类号：

学科分类号：

摘要：

Foreign acquisitions have been growing dramatically since the 1980s despite academic studies showing that shareholders of acquirers generally do not realize any significant gain. In this paper, we investigate whether foreign acquisitions are motivated by managerial self-interest. Logistic regressions are performed to establish a link between foreign acquisitions and the acquirer's free cash flow. The results show that foreign acquisitions of low-Q firms are strongly influenced by managerial discretion. In addition, acquisitions of low-Q firms are conducted without consideration of the performance of the acquirers. Foreign acquisitions of high-Q firms, however, do not represent overinvestments. © 2001 Kluwer Academic Publishers.

引用

页码：53 / 63

页数：10

共 32 条

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