Empirical Evidence Indicates That the Returns to Shareholders of the Target

question 13

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.Does your answer depend on the way the acquisition is financed?

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Definitions:

Customer Satisfaction

A state that is achieved when companies meet the needs and expectations customers have for their goods or services.

Long-Term Sales

Sales strategies focused on achieving sustained revenue growth over an extended period rather than immediate gains.

Needs

States of felt deprivation. Consumers feel that deprivation when they lack something useful or desirable like food, clothing, shelter, transportation, or safety.

Ethical Behavior

Acting in ways consistent with societal standards of right and good conduct, both in personal and professional contexts.