What does empirical evidence suggest about the distribution of gains from mergers?
A) Shareholders of the acquired firm gain the most.
B) Shareholders of the acquiring firm gain the most.
C) Neither group of shareholders is likely to gain.
D) Both groups of shareholders gain equally.

Question

Quizplus · Accepted Answer

Empirical evidence suggests that shareholders of the acquired firm typically gain the most from mergers, often receiving a premium on their shares.

What Does Empirical Evidence Suggest About the Distribution of Gains