Assessing The Long-Term Impact Of Hostile Takeovers

Abstract

This paper has attempted to review the hostile takeover phenomenon by casting the arguments for and against such takeovers in an objective framework.  The paper also relies on empirical data on the long term impact of hostile takeovers gathered from firms that were taken over successfully.  The authors have concluded that the hostile takeover phenomenon is minuscule in terms of the larger merger and acquisitions activity, and that it has beneficial consequences even though the loss of jobs is inevitably painful.