Some research findings have shown that acquisitions typically______for shareholders in the acquiring firm.
A)result in above-average returns
B)provide approximately average returns
C)result in returns near zero
D)take some time to achieve private synergy, but eventually result in above-average returns

Question

Quizplus · Accepted Answer

Research findings have shown that acquisitions typically result in little to no returns for shareholders in the acquiring firm. While there may be some benefits to the acquiring firm such as increased market share or access to new technology, these benefits may not necessarily lead to increased profitability in the short term. In many cases, the costs of the acquisition (such as integration costs or paying a premium for the target company) outweigh the benefits, leading to little to no return for shareholders.

Some Research Findings Have Shown That Acquisitions Typically______for Shareholders in the Acquiring