Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th Edition by Michael Hitt , R. Duane Ireland , Robert Hoskisson

Exercise 2

When a firm is in the process of restructuring itself by divesting some assets and acquiring others, managers may have incentives to restructure in ways that increase their power base and compensation package. Does this possibility explain at least part of the reason for the less-than-encouraging outcomes of acquisitions for shareholders of the acquiring firm?