Mitchell and Lehn found that bad bidders are more likely to become takeover targets.

Question

Quizplus · Accepted Answer

Mitchell and Lehn's study found that companies with poorer performance and lower stock prices are more likely to become takeover targets, and these companies are more likely to have engaged in unsuccessful bidding activity in the past, earning them the label of "bad bidders." Therefore, bad bidders are more likely to become takeover targets.

Mitchell and Lehn Found That Bad Bidders Are More Likely