Skip to main content
SpringerLink
Log in

Personality

Mergers as Marriages: Using Attachment Theory to Understand Mergers and Acquisitions

  • Chapter
Understanding Mergers and Acquisitions in the 21st Century

  • 831 Accesses

Abstract

Empirical studies repeatedly suggest that mergers on average do not create the wealth which CEOs promise (see e.g. Travlos, 1987; Andrade et al., 2001; Moeller et al., 2005; Gaughan, 2007; Martynova and Renneboog, 2008).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  • Ainsworth, M.D., Blehar, M.C., Waters, E., and Wall, S. (1978) Patterns of Attachment: A Psychological Study of the Strange Situation. Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Andrade, G., Mitchell, M., and Stafford, E. (2001) New evidence and perspectives on mergers. The Journal of Economic Perspectives 15: 103–120.

    Article  Google Scholar 

  • Ashton-James, C.E., McCarthy, K.J., and Dranca-Iacoban, A. (2011) Power and the Destruction of Value in Mergers and Acquisitions, in McCarthy, K.J., M. Fiolet, and W.A. Dolfsma (Eds.), The Nature of the New Firm. Cheltenham: Edward Elgar.

    Google Scholar 

  • Berger, A.N., and D.B. Humphrey (1992) Megamergers in banking and the use of cost efficiency as an antitrust defense. Finance and Economics Discussion Series 203, Board of Governors of the Federal Reserve System (U.S.).

    Google Scholar 

  • Betton, S., and Eckbo, B.E. (2000) Toeholds, Bid Jumps, and expected payoffs in takeovers. The Review of Financial Studies 13: 841–882.

    Article  Google Scholar 

  • Bowlby, J. (1973) Attachment and Loss: Vol. 2. Separation: Anxiety and Anger. New York, NY: Basic Books.

    Google Scholar 

  • Bowlby, J. (1980) Attachment and Loss: Vol. 3. Sadness and Depression. New York, NY: Basic Books.

    Google Scholar 

  • Bowlby, J. (1982) Attachment and Loss: Vol. 1. Attachment, 2nd ed. New York, NY: Basic Books. (Original work published 1969.)

    Google Scholar 

  • Brennan, K.A., Clark, C.L., and Shaver, P.R. (1998) Self-report Measurement of Adult Romantic Attachment: An Integrative Overview, in Simpson, J.A., and W.S. Rholes (Eds.), Attachment Theory and Close Relationships (pp. 46–76). New York, NY: Guilford Press.

    Google Scholar 

  • Buhner, R. (1991) The success of mergers in Germany. International Journal of Industrial Organization 9(4): 513–532.

    Article  Google Scholar 

  • Campa, J.M., and Hernando, I. (2004) Shareholder value creation in European M&As. European Financial Management 10(1): 47–81.

    Article  Google Scholar 

  • Carline, N., Linn, S., and Yadav, P. (2002) The Impact of Firm-Specific and Deal-Specific Factors on the Real Gains in Corporate Mergers and Acquisitions: An Empirical Analysis. University of Oklahoma Working Paper.

    Google Scholar 

  • Cartwright, S., and Cooper, L.C. (1990) The impact of mergers and acquisitions on people at work: existing research and issues. British Journal of Management 1: 65–76.

    Article  Google Scholar 

  • Chang, S. (1998) Takeovers of privately held targets, methods of payment, and bidder returns. Journal of Finance 53: 773–784.

    Article  Google Scholar 

  • Chatterjee, S. (1986) Types of synergy and economic value: the impact of acquisitions on merging and rival firms. Strategic Management Journal 7: 119–139.

    Article  Google Scholar 

  • Chatterjee, A., and Hambrick, D.C. (2011) Executive personality, capability cues, and risk taking: how narcissistic CEOs react to their successes and stumbles. Administrative Science Quarterly 56: 202–237.

    Article  Google Scholar 

  • Cook, K.S., and Rice, E. (2006) Handbook of Social Psychology John Delamater (Ed.). New York: Springer.

    Google Scholar 

  • Devos, E., Kadapakkam, P.R., and Krishnamurthy, S. (2008) How do mergers create value? A comparison of taxes, market power, and efficiency improvements as explanations for synergies. Review of Financial Studies 22(3): 1179–1211.

    Article  Google Scholar 

  • Fraley, R.C., Niedenthal, P.M., Marks, M., Brumbaugh, C., and Vicary, A. (2006) Adult attachment and the perception of emotional expressions: probing the hyperactivating strategies underlying anxious attachment. Journal of Personality 74: 1163–1190.

    Article  Google Scholar 

  • Fraley, R.C., and Shaver, P.R. (2000) Adult romantic attachment: theoretical developments, emerging controversies, and unanswered questions. Review of General Psychology 4: 132–154.

    Article  Google Scholar 

  • Gaughan, P.A. (2007) Mergers, Acquisitions and Corporate Restructurings. Hoboken, NJ: John Wiley and Sons.

    Google Scholar 

  • Geller, D., and Bamberger, P. (2009) Bringing avoidance and anxiety to the job: attachment style and instrumental helping behavior among coworkers. Human Relations 62: 1803–1827.

    Article  Google Scholar 

  • Gugler, K., Mueller, D.C., and Yurtoglu, B.B. (2003) The Determinants of Merger Waves, Mimeo, University of Vienna.

    Google Scholar 

  • Hardy, G.E., and Barkham, M. (1994) The relationship between interpersonal attachment styles and work difficulties. Human Relations 47: 263–281.

    Article  Google Scholar 

  • Haunschild, P. (1994) How much is that company worth? Interorganizational relationships, uncertainty, and acquisition premiums. Administrative Science Quarterly 39: 391–411.

    Article  Google Scholar 

  • Hayward, M.L.A. and Hambrick, D.C. (1997) Explaining the premiums paid for large acquisitions: evidence of CEO Hubris. Administrative Science Quarterly 42: 103–127.

    Article  Google Scholar 

  • Hazan, C., and Shaver, P. (1987) Romantic love conceptualized as an attachment process. Journal of Personality and Social Psychology 52: 511–524.

    Article  Google Scholar 

  • Hazan, C., and Shaver, P. (1990) Love and work: an attachment-theoretical perspective. Journal of Personality and Social Psychology 59: 270.

    Article  Google Scholar 

  • Hitt, M., Harrison, J., Ireland, R.D., and Best, A. (1998) Attributes of successful and unsuccessful acquisitions of US firms. British Journal of Management 9: 91–114.

    Article  Google Scholar 

  • Hitt, M.A. and Pisano, V. (2003) The cross-border merger and acquisition strategy: a research perspective, management research. The Journal of the Iberoamerican Academy of Management 1(2): 133–144.

    Google Scholar 

  • Jensen, M.C. (1986) Agency costs of free cash flow, corporate finance and takeovers. American Economic Review 76: 323–329.

    Google Scholar 

  • Jensen, M.C. (2003) Agency Costs of Overvalued Equity, work in Progress, Harvard Business School.

    Google Scholar 

  • Jensen, M.C., and Ruback, R.S. (1983) The market for corporate control: the scientific evidence. Journal of Financial Economics 11: 5–50.

    Article  Google Scholar 

  • Joplin, J.R., Nelson, D.L., and Quick, J.C. (1999) Attachment behavior and health: relationships at work and home. Journal of Organizational Behavior 20: 783–796.

    Article  Google Scholar 

  • King, D.R., Dalton, D.R., Daily, C.M., and Covin, J.G. (2004) Meta-analyses of post-acquisition performance: indications of unidentified moderators. Strategic Management Journal 25: 187–200.

    Article  Google Scholar 

  • Krausz, M., Bizman, A., and Braslavsky, D. (2001) Effects of attachment style on preferences for and satisfaction with different employment contracts: an exploratory study. Journal of Business and Psychology 16: 299–316.

    Article  Google Scholar 

  • Malmendier, U., and Tate, G. (2004) CEO overconfidence and corporate investment. Journal of Finance 60: 2661–2700.

    Article  Google Scholar 

  • Marris, R.L. (1964) The Economic Theory of Managerial Capitalism. London: MacMillan.

    Google Scholar 

  • Martynova, M., and Renneboog, L. (2008) A century of corporate takeovers: What have we learned and where do we stand? Journal of Banking and Finance 32: 2148–2177.

    Article  Google Scholar 

  • Mikulincer, M., and Florian, V. (1998) The relationship between adult attachment styles and emotional and cognitive reactions to stressful events. In J.A. Simpson and W.S. Rholes (Eds.), Attachment Theory and Close Relationships (pp. 143–165). New York, NY: Guilford Press.

    Google Scholar 

  • Mikulincer, M., and Shaver, P.R. (2005) Attachment theory and emotions in close relationships: exploring the attachment-related dynamics of emotional reactions to relational events. Personal Relationships 12: 149–168.

    Article  Google Scholar 

  • Mikulincer, M., and Shaver, P.R. (2007) Attachment in adulthood: structure, dynamics, and change. New York, NY: Guilford Press.

    Google Scholar 

  • Moeller, S.B., Schlingemann, F.P., and Stulz, R.M. (2004) Firm size and the gains from acquisitions. Journal of Financial Economics 73: 228.

    Article  Google Scholar 

  • Moeller, S.B., Schlingemann, F.P., and Stulz, R.M. (2005) Wealth destruction on a massive scale? A study of acquiring-firm returns in the recent merger wave. Journal of Finance 60: 75 7–782.

    Google Scholar 

  • Officer MS. (2007) The price of corporate liquidity: acquisition discounts for unlisted targets. Journal of Financial Economics 83: 571–598.

    Article  Google Scholar 

  • Park, S.H., Westphal, J.D., and Stern, I. (2011) Set up for a fall: the insidious effects of flattery and opinion conformity toward corporate leaders. Administrative Science Quarterly 56: 257–302.

    Article  Google Scholar 

  • Puranam, P., and Singh, H. (1999) Rethinking M&A for the High Technology Sector. Wharton School Working Paper, Presented at AOM 2000 meetings.

    Google Scholar 

  • Ravenscraft, D.J., and Scherer, F.M. (1987) Mergers, Sell-offs and Economic Efficiency. Washington, DC: The Brookings Institution.

    Google Scholar 

  • Rhoades, S.A. (1998) The efficiency effects of bank mergers: an overview of case studies of nine mergers. Journal of Banking and Finance 22: 273–291.

    Article  Google Scholar 

  • Rholes, W.S. and Simpson, J.A. (2004) Attachment Theory: Basic Concepts and Contemporary Questions. In W.S. Rholes and J.A. Simpson (Eds.), Adult Attachment: Theory, Research, and Clinical Implications (pp. 3–14). New York, NY: Guilford Press.

    Google Scholar 

  • Richards, D.A., and Schat, C.H. (2011) Attachment at (not to) work: applying attachment theory to explain individual behavior in organizations. Journal of Applied Psychology 96: 169–182.

    Article  Google Scholar 

  • Roll, R. (1986) The Hubris hypothesis of corporate takeovers. Journal of Business 59: 197–216.

    Article  Google Scholar 

  • Schleifer, A., and Vishny, R.W. (1989) Entrenchment: the case of manager-specific investments. Journal of Financial Economics 25: 123–139.

    Article  Google Scholar 

  • Simon, J.L., Mokhtari, M., and Simon, D.H. (1996) Are mergers beneficial or detrimental? Evidence from advertising agencies. International Journal of Economics and Business 3(1): 69–82.

    Article  Google Scholar 

  • Travlos, N.G. (1987) Corporate takeover bids, methods of payment, and acquiring firms’ stock returns. Journal of Finance 42: 943–963.

    Article  Google Scholar 

  • Weston, F.J., Mitchell, M.L., and Mulherin, H.J. (2004) Takeovers, Restructuring and Corporate Governance. Upple Saddle River, NJ: Pearson Prentice Hall.

    Google Scholar 

  • Williamson, Oliver E. (1985) The Economic Institutions of Capitalism. New York: Free Press.

    Google Scholar 

Download references

Authors
  1. Boyana N. Petkova
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Killian J. McCarthy
    View author publications

    You can also search for this author in PubMed Google Scholar

Copyright information

© 2013 Boyana N. Petkova and Killian J. McCarthy

About this chapter

Cite this chapter

Petkova, B.N., McCarthy, K.J. (2013). Personality. In: Understanding Mergers and Acquisitions in the 21st Century. Palgrave Macmillan, London. https://doi.org/10.1057/9781137278074_9

Download citation

Publish with us

Policies and ethics

Search

Navigation