Acquisition experience and the winner’s curse in corporate acquisitions

C-Tier
Journal: Applied Economics
Year: 2024
Volume: 56
Issue: 27
Pages: 3247-3261

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The winner’s curse describes the behavioural phenomenon that the winner of a bidding contest pays a price that is too high. This paper shows that experiential learning cannot prevent a winner’s curse on the market of corporate control as acquiring firms with acquisition experience still pay a higher price for the 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.

Technical Details

RePEc Handle
repec:taf:applec:v:56:y:2024:i:27:p:3247-3261
Journal Field
General
Author Count
2
Added to Database
2026-02-02