This study examines whether top managerial executive envy plays an important role in merger waves. Since managerial benefits, especially compensation, always increase with firm size, the envy hypothesis conjectures that top executive officers rush into acquisitions due to their envious...

This study tests whether bank mergers are associated with valuation gains and examines how equity overvaluation and management compensation incentives influence any valuation effects. Our evidence shows that bidders are overvalued relative to their targets, especially in equity offer deals. We...