Managerial hubris is the well-founded belief held by managers in bidding firms that they can manage the assets of a target firm more efficiently than the target firm's current management.

Question

Quizplus · Accepted Answer

Managerial hubris refers to the overconfidence of managers in their ability to manage a target firm's assets better, often leading to overvaluation and poor acquisition decisions. It is not necessarily well-founded.

Managerial Hubris Is the Well-Founded Belief Held by Managers in Bidding