For acquiring ﬁrms,empirical studies show that,on average,the returns to shareholders are:
A)Slightly positive
B)Slightly negative
C)Insigniﬁcant from zero
D)Too varied to generalize.

Question

Quizplus · Accepted Answer

Empirical studies show that, on average, the returns to shareholders in acquiring firms are slightly negative, meaning that the acquisition does not add value to the shareholders.

For Acquiring ﬁRms,empirical Studies Show That,on Average,the Returns to Shareholders