Findingsfrom several studies on corporate mergers and acquisitions during the 1970’s and 1980’
s raise questions about why firms initiate and consummatesuch transactions. One study showed, for example, that acquiring firms were onaverage unable to maintain acquired firms’ pre-merger levels ofprofitability. A second study concludedthat post-acquisition gains to most acquiring firms were not adequate to coverthe premiums paid to obtain acquired firms. A third demonstrated that, following the announcement of a prospective merger,the stock of the prospective acquiring firm tends to increase in value muchless than does that of the firm for which it bids. Yet mergers and acquisitions remain common, andbidders continue to assert that their objectives are economic ones. Acquisitionsmay well have the desirable effect of channeling a nation’s resourcesefficiently from less to more efficient sectors of its economy, but theindividual acquisitions executives arranging these deals must see them asadvancing either their own or their companies’ private economic interests. It seems that factors having little to dowith corporate economic interests explain acquisitions. These factors may includethe incentive compensation of executives, lack of monitoring by boards ofdirectors, and managerial error in estimating the value of firms targeted foracquisition. Alternatively, the acquisition acts of bidders may derive frommodeling: a manager does what other managers do.
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33.Q11: According to the passage, during the 1970’sand 1980’s bidding firms differed from the firms for which they bid in that bidding firms
A. tendedto be more profitable before a merger than after a merger
B. weremore often concerned about the impact of acquisitions on national economies
C. wererun by managers whose actions were modeled on those of other managers
D. anticipatedgreater economic advantages from prospective mergers
E. experiencedless of an increase in stock value when a prospective merger was announced
35. Q13: The author of the passage implies that which ofthe following is a possible partial explanation for acquisition behavior duringthe 1970’s and 1980’s? A. Managers wished to imitate other managersprimarily because they saw how financially beneficial other firms’ acquisitionswere. B. Managers miscalculated the value of firmsthat were to be acquired. C. Lack of consensus within boards of directorsresulted in their imposing conflicting goals on managers. D. Total compensation packages for managersincreased during that period. E. The value of bidding firms’ stock increasedsignificantly when prospective mergers were announced.
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发表于 2014-10-9 22:32:33
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