Mergers often occur because managers are not maximizing shareholder value.

Name: Mergers often occur because managers are not maximizing shareholder value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Mergers can be seen as a way for managers to hide their inability to create value for shareholders on their own. By merging with another company, they may hope to achieve economies of scale, synergies, or access new markets, but if these benefits are not realized, the merger may ultimately harm shareholders.

Mergers Often Occur Because Managers Are Not Maximizing Shareholder Value