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 firmsdiffered from the firms for which they bid in that bidding firmsA. 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
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34.Q12: It can inferred from the passage that the author would be most likely toagree with which of the following statements about corporate acquisitions?
A. Theirknown benefits to national economies explain their appeal to individual firmsduring the 1970’sand 1980’
s.B. Despitetheir adverse impact on some firms, they are the best way to channel resourcesfrom less to more productive sectors of a nation’s economy.
C. Theyare as likely to occur because of poor monitoring by boards of directors as tobe caused by incentive compensation for managers.
D. Theywill be less prevalent in the future, since their actual effects will gainwider recognition.
E. Factorsother than economic benefit to the acquiring firm help to explain the frequencywith which they occur.
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35.Q13: The author of the passage implies that which of the following is apossible partial explanation for acquisition behavior during the 1970’s and 1980’
s?A. Managerswished to imitate other managers primarily because they saw how financiallybeneficial other firms’ acquisitions were.
B. Managersmiscalculated the value of firms that were to be acquired.
C. Lackof consensus within boards of directors resulted in their imposing conflictinggoals on managers.
D. Totalcompensation packages for managers increased during that period.
E. Thevalue of bidding firms’ stock increased significantly when prospective mergerswere announced. | 
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发表于 2010-3-8 07:25:26
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