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Article: Research conducted at University of Chile has provided new information about institutional and theoretical economics.
- Article from:
- Economics Week
- Article date:
- November 20, 2009
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"I propose a model of mergers in which synergies and CEO power play a crucial role," scientists writing in the Journal of Institutional and Theoretical Economics - Zeitschrift Fur Die Gesamte Staatswissenschaft report.
"A merger is modeled as a bargaining game between the acquiring and the target board of directors, with the gains from a merger divided according to the generalized Nash bargaining solution. The model's implications are consistent with the available empirical evidence on stock returns, and yield some new untested implications that are mainly related to the relationship between CEO power, corporate governance, and mergers," wrote F. Balmaceda and ...