The Main Reason That Empirical Evidence of Shareholder Returns Fails

question 32

Multiple Choice

The main reason that empirical evidence of shareholder returns fails to provide conclusive evidence on the performance outcomes of mergers and acquisition is that:

• A)Stock market data only shows expectations about performance,not actual performance
• B)Stock market data is can only show the impact of M&A announcements and then only over a period of up to 12 months
• C)Both (a)and (b)
• D)Neither (a)nor (b)

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Definitions:

Herzberg

Refers to Frederick Herzberg, a psychologist known for his theory on job satisfaction and motivation, distinguishing between hygiene factors and motivators.

Motivates Employees

The process or actions taken to inspire and encourage workers to achieve their best performance and meet organizational goals.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests employee motivation is influenced by two factors: hygiene factors that can cause dissatisfaction and motivators that can create job satisfaction.

Satisfier

A factor that contributes to satisfaction, often used in the context of job satisfaction and employee motivation.