Research suggests that government ownership of emerging economy firms leads to overpayment in cross-border acquisitions and that overpayment reduces value for minority shareholders (nongovernment shareholders).

Question

Quizplus · Accepted Answer

This statement is supported by research. Studies have found that government ownership of firms in emerging economies leads to overpayment in cross-border acquisitions, which in turn reduces value for minority shareholders. This is because the government may prioritize political interests over maximizing shareholder value.

Research Suggests That Government Ownership of Emerging Economy Firms Leads