Arroyabe, Marta and Hussinger, Katrin (2024) Acquisition experience and the winner’s curse in corporate acquisitions. Applied Economics, 56 (27). pp. 3247-3261. DOI https://doi.org/10.1080/00036846.2023.2206108
Arroyabe, Marta and Hussinger, Katrin (2024) Acquisition experience and the winner’s curse in corporate acquisitions. Applied Economics, 56 (27). pp. 3247-3261. DOI https://doi.org/10.1080/00036846.2023.2206108
Arroyabe, Marta and Hussinger, Katrin (2024) Acquisition experience and the winner’s curse in corporate acquisitions. Applied Economics, 56 (27). pp. 3247-3261. DOI https://doi.org/10.1080/00036846.2023.2206108
Abstract
The winner’s curse describes the behavioural phenomenon that the winner of a bidding contest paysa price that is too high. This paper shows that experiential learning cannot prevent a winner’s curse onthe market of corporate control as acquiring firms with acquisition experience still pay a higher price forthe target in a bidding contest. Acquisition experience, however, is related to a superior post-acquisition performance of the winning firm after acquisitions associated with a bidding contest.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | firm acquisitions; winner's curse; bidding contest; acquisition experience; experiential learning |
| Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 25 Jul 2024 14:27 |
| Last Modified: | 25 Jul 2024 14:27 |
| URI: | http://repository.essex.ac.uk/id/eprint/38837 |
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