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The Hubris Hypothesis: Empirical Evidence

de Bodt, Eric and Cousin, Jean-Gabriel and Roll, Richard (2014) The Hubris Hypothesis: Empirical Evidence. Social Science Working Paper, 1390. California Institute of Technology , Pasadena, CA. (Unpublished)

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The Hubris Hypothesis is grounded on a failure to adequately account for the winner’s curse, which leads to overbidding. Surprisingly few papers have attempted to develop a direct empirical test of the presence of overbidding in M&A contests. We develop two such tests in this paper. Our results strongly support the existence of overbidding.

Item Type:Report or Paper (Working Paper)
Group:Social Science Working Papers
Subject Keywords:mergers and acquisitions; hubris hypothesis
Series Name:Social Science Working Paper
Issue or Number:1390
Classification Code:JEL: G34
Record Number:CaltechAUTHORS:20170726-142038067
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:79433
Deposited By: Hanna Storlie
Deposited On:07 Aug 2017 21:46
Last Modified:03 Oct 2019 18:20

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