Empirical Evidence Indicates That the Returns to Shareholders of the Target

question 49

Essay

Empirical evidence indicates that the returns to shareholders of the target firm vary significantly from the returns to the shareholders of the acquiring firm.Identify the shareholders that tend to realize the smaller return and provide some possible explanation for these low returns.

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Definitions:

Microstructures

are the patterns of relatively intimate social relations formed during face-to-face interaction. Families, friendship circles, and work associations are examples of microstructures.

Cultural Hegemony

involves the control of a culture by dominant classes and other groups to the point where their values are universally accepted as common sense.

Functionalists

Functionalists focus on how society's parts are structured to maintain its stability, with each part contributing to society's overall function and health.

Class Differences

Variations in social standing, wealth, education, and power among different social groups, often leading to inequality.