Which of the following motives for M&A does NOT necessarily increase shareholder value?
A)Synergy.
B)Hubris.
C) Performance.
D) Marginal economic benefits.

Question

Quizplus · Accepted Answer

Hubris, which is defined as excessive pride or self-confidence, does not necessarily lead to an increase in shareholder value. CEOs or executive teams with hubris may pursue M&A deals for personal gain, rather than with a strategic intent to create value for shareholders. In fact, such deals may ultimately harm shareholder value if they are overvalued or poorly executed. Synergy, performance, and marginal economic benefits are all motives that can contribute to increasing shareholder value in M&A deals.

Which of the Following Motives for M&A Does NOT Necessarily