Managerial decision, anchoring effects and acquisition premiums

Yi Sun, Shuaiqi Xu and Yin Wang

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: This paper explores the anchoring effect, which is an irrational factor influencing decision-making regarding M&A premiums in M&A events. The study focuses on a sample of M&A transactions conducted by Chinese A-share listed companies between 2007 and 2021. We present significant evidence of the internal anchor anchoring effect in the M&A process in the internal anchor subsample. In the external anchor subsample demonstrates that external anchors have a certain degree of anchoring effects. When both anchors are present, the internal anchor exhibits a more significant anchoring effect compared to the external anchor.

Keywords: Merger and acquisition premium; Anchoring effect; Managerial decision (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323008528

DOI: 10.1016/j.frl.2023.104480

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