Managers May Willingly Overpay in Mergers and Acquisitions in Order

question 19

True/False

Managers may willingly overpay in mergers and acquisitions in order to maximize their own interests.

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Definitions:

Overjustification Effect

A psychological phenomenon where providing an external incentive for a behavior someone already finds rewarding leads to a reduction in intrinsic motivation.

Intrinsic Motivations

Internal drives to perform a task or engage in an activity purely because of the inherent satisfaction and enjoyment derived from doing it.

Extrinsic Motivations

Inspiration fueled by outside incentives, including financial gain, recognition, academic achievement, and commendation.

Overjustification Effect

A phenomenon where providing an external incentive for a behavior that is already internally rewarding can lead to a decrease in intrinsic motivation for that behavior.