The hubris motive for M&As refers to which of the following?
A) Explains why mergers may happen even if the current market value of the target firm reflects its true economic value
B) The ratio of the market value of the acquiring firm's stock exceeds the replacement cost of its assets
C) Agency problems
D) Market power
E) The Q ratio

Question

Quizplus · Accepted Answer

The hubris motive suggests that mergers may occur even if the current market value of the target firm reflects its true economic value due to the overconfidence and arrogance of the acquiring firm's management.

The Hubris Motive for M&As Refers to Which of the Following