In general, the evidence indicates that mergers create wealth for the stockholders of the acquiring firm.

Question

Quizplus · Accepted Answer

Most studies and empirical evidence suggest that while mergers may create value overall, the stockholders of the acquiring firm often do not experience significant wealth gains and may even see a decrease in stock value in the short term. The benefits of mergers are more commonly seen by the stockholders of the firm being acquired.

In General, the Evidence Indicates That Mergers Create Wealth for the Stockholders