39
conglomer ate
but during 80s
t
here w as
a
shift aw ay
from
conglomer ate diversificat ion; Divest ment is an op tion
w
hich
manage ment is
like y
ly
t
o
hold
in reserve.
5.
Decreased un–diversifiable “ employment
risk”
i.e., risk
of
losing job,
p
rofessional rep utat ion,
et c.
M
anagers’
p
ersonal
wealth
is
linked
more,
to
firm siz e and risk
of
bankrupt cy
t
han
t
o firm
p
erformance.
T
he mer ger
off ers
an
op p ort unity t o
imp rove one’s
social id ent ity
as w
ell
6.
Valu e maximiz at ion is sp ecially
a
sharehold er’s
goal.
7. Use of cont rol position.
8.
Sy nergy .
9.
M
onop oly .
10. Corporate
rest ruct uring is needed
indust ry w ide.
11. Cost reduct ion.
12. M anageria l vs. shareholder int erest s.
M
ot ives
for t akeovers
t
end
t
o reflect
manageria l
rat her than
shareholder
int erest s
in
abandoned
mer gers.
A
st udy
has
invest igat ed
owner-mana ger
conflict
of int erest .
13. Rep ut at ion
enhancement :
local
sy st ems
do
not
app ear
t
o
have
low er cost
but
do app ear t o enjoy
reputat ion
benefit s.
14. Innovat ion
performance.
15. Resource redep loy ment.
16. Pow er, achieve ment,
sensation seekin g and p rest ge.
ige.
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