compensation, its management is more likely to make value-destroying acquisitions, and its managers are more likely to engage in …

evidence that managers consider cross-holdings when identifying potential targets and that they trade off cross-holdings with …

Prior work has established that entrenched managers make value-decreasing acquisitions. In this study, we determine how … they destroy that value. Overall, we find that value destruction by entrenched managers comes from a combination of factors … managers simply overpay for good targets or choose targets with lower synergies. We find that while they overpay, they also …