Econ Dept Seminars

Lecture Details

Prof Jarrad Harford of the University of Washington (Jarrads home page) presented and interesting and lively seminar on his recent research into the impact of shareholder cross holdings on the decisions of managers to acquire other companies. The stylized fact that acquisitions tend to reduce the share price of the acquiring company may be correct, but the correlated stylized fact that share price in the target firm increases means shareholders with larger cross shareholdings may be better off with a merger. And managers? just whose wealth are they supposed to maximize? Interesting food for thought here... some good questions from the audience of UC econ dept academics - during the seminar.