What is the empirical evidence on merger and acquisition performance?
A)The shareholders of the acquired firm gain
B)The shareholders of acquiring firms rarely gain significantly, and often lose
C)A and B are both true
D)A and B are both false

Question

Quizplus · Accepted Answer

There is empirical evidence that the shareholders of the acquired firm tend to gain from the merger or acquisition, while the shareholders of the acquiring firm often do not gain significantly and sometimes even lose. Therefore, both statements A and B are true.

What Is the Empirical Evidence on Merger and Acquisition Performance