Punishing Managers for Bad Acquisitions: Does Firm Size Matter?

Martin, John A.; Combs, James G.
August 2009
Academy of Management Perspectives;Aug2009, Vol. 23 Issue 3, p92
Academic Journal
This article focuses on the outcome of managers whose acquisitions fail. Examined is whether they are punished, especially if they repeatedly make bad acquisition decisions. Research in both finance and management indicates that when managers continually make bad acquisitions, it's time to hire a new management team. Attention is given to a study by David Offenberg of Loyola Marymount University. In his study he explored whether managers at large companies really do go unpunished when they make bad acquisitions.


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