Published July 2014 | Version Submitted
Working Paper Open

The Hubris Hypothesis: Empirical Evidence

Abstract

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.

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Identifiers

Eprint ID
79433
Resolver ID
CaltechAUTHORS:20170726-142038067

Dates

Created
2017-08-07
Created from EPrint's datestamp field
Updated
2019-10-03
Created from EPrint's last_modified field

Caltech Custom Metadata

Caltech groups
Social Science Working Papers
Series Name
Social Science Working Paper
Series Volume or Issue Number
1390