Does Management Matter for Conglomerate Mergers?

Abstract

Thia paper examines the motivation that managers of acquiring firms show with respect to conglomerate merger behavior. The two existing theoretical motivations, the 'Corporate Control' theory and the 'Life-Cycle' theory, are contrasted and subsequently tested with a sample of U.S. merger cases from the 1980's. The results generally support the 'LifeCycle' model. (034, L20)