Chapter

Shareholder Value

Bill Ryan

in The Handbook of Mergers and Acquisitions

Published in print June 2012 | ISBN: 9780199601462
Published online September 2012 | e-ISBN: 9780191743320 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199601462.003.0013
Shareholder Value

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Much of the research on mergers and acquisitions (M&A) is around pre- and post-deal activity. This can include aspects of relative success rates and questions as to whether or not firms pay too much for an acquisition. Other areas of research cover reasons why firms pursue M&A strategies. These invariably cover routes to growth that include acquiring technologies or access to markets. However, where there is less discussion and arguably under-researched is the connection between organizational growth via M&A activity and the possible drivers of that growth search in the form of shareholder value. Shareholder value has been variously described as epochal revolution and well as being a fad. However, there is little disagreement as to the influential power of shareholders and the continuing search for shareholder value. Arguably, it legitimizes and pressurizes management action to create value for shareholders. One such route is via M&A activity.

Keywords: shareholder value; mergers and acquisitions; shareholder influence

Chapter.  6572 words.  Illustrated.

Subjects: Financial Institutions and Services

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