The issue of whether mergers and acquisitions lead to economic efficiency is divisive, as is confirmed by mixed empirical evidence. There is no general agreement on the dominating motive for such transactions. Consequently, the sources of takeover gains are unknown. Synergy realisation and...

The introduction of the ideology of maximising shareholder value and the rise of institutional investors in LMEs contributed to the development of an active MCC, which threatens managers with replacement if they do not act in the best interests of shareholders. However, some authors argue that...

Prior empirical research provides substantial evidence showing that mergers and acquisitions lead to operating performance decline (Ghosh, 2001). At the same time such transactions involve workforce reductions, as reported in the public media. However, systematic empirical evidence on the...