, generally implicit assumption that managers cannot undo their incentive packages, (ii) the standard modeling practice of … motives in managers' portfolio choices. …

Casual observations suggest that bidder managers sometimes pay more than the economic value of target in mergers and … that bidder managers exploit their information advantage about the pricing implications of overpaid acquisitions by … acquisitions. Second, we document that bidder managers pay more than the economic value of targets not due to managerial hubris or …

This article provides evidence that managers have private information they exploit for financial gain at the expense of … managers might optimally agree upon an arrangement where managers systematically exploit their private information about the …