Title

Corporate entrepreneurship: Growth through acquisitions with a focus on target firm TMT retention

Date of this Version

2-2-2010

Document Type

Conference Paper

Publication Details

Published Version.

Kiessling, T. & Dabic, M. (2010). Corporate entrepreneurship: Growth through acquisitions with a focus on target firm TMT retention. Paper presented at the 7th AGSE International Entrepreneurship Research Exchange, Sunshine Coast, Australia.

Access the conference website.

2010 HERDC submission. FoR Code: 150303

© Copyright Timothy Kiessling & Marina Dabic, 2010

Abstract

Extract:

From the market for corporate control (MCC) perspective, the key role of takeovers is to correct the effects of managers¿ past behavior that has caused the firm to under-perform (Jensen, 1986). Such corrections occur when alternative management teams compete successfully for the right to control the assets of undervalued corporations (Jensen and Ruback, 1983). This literature further suggests that getting rid of the previous management should improve the performance of the acquired firm.

 

This document has been peer reviewed.