...The Hubris Hypothesis of Corporate Takeovers Author(s): Richard Roll Source: The Journal of Business, Vol. 59, No. 2, Part 1 (Apr., 1986), pp. 197-216 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/2353017 Accessed: 10/02/2010 10:10 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=ucpress. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to The Journal...
Words: 8676 - Pages: 35
...&a hubrisHUBRIS HYPOTHESIS The Hubris hypothesis implies that managers seek to acquire firms for their own personal motives and that the pure economic gains to the acquiring firm are not the sole motivation or even the primary motivation in the acquisition. It is argued that the evidence supports the hubris hypothesis as much as it supports other explanations such as taxes, synergy, and inefficient target management. The key element in this series of events is the valuation of an asset (the stock) that already has an observable market price. The pre-existence of an active market in the identical item being valued distinguishes takeover attempts from other types of bids, such as for oil-drilling rights and paintings. These other assets trade infrequently and no two of them are identical. This means that the seller must make his own independent valuation. There is symmetry between the bidder and the seller in the necessity for valuation. In takeover attempts, the target firm shareholder may still conduct a valuation, but it has a lower bound, the current market price. The bidder knows for certain that the shareholder will not sell below that; thus when the valuation turns out to be below the market price, no offer is made Theory predicts that the winning bid is an accurate assessment of value. In takeovers, however, if the initial bid (by the market) wins the auction, we throw away the observation. If all bidders accounted properly for the "winner's curse," there would be no...
Words: 1758 - Pages: 8
...Elias Schrank Waters CWL 320 November 28, 2014 There is an overbearing sense of narcissism of most of the main cast. Satirizing America’s gun control agon and consumer reaction to sensationalized media, the fervor of the cast’s “hot” stances in “Gun Fever Too: Still Hot” is ultimately an examination of futility in impulsive response catalyzed by hubris. The cast’s narcissistic tendencies are seen in their insistence of proving their claims. Both sides display a hyperbolic sense of enthusiasm for their side of the debate, illustrating the comic message. The groundation - liberation dichotomy is examined in their stances concerning the active agon regarding gun control in America. While both sides exhibit extreme beliefs, groundation can be seen in Dee and Dennis’ intent to prove guns need to be eradicated from the streets entirely, and liberation in Charlie and Mac’s wishes that guns be freely available for personal defense. Also subjective is the nature of the dichotomy; relative to one’s belief, the roles still serve either function. Their dealing in “all or nothing” ultimates allows for complementary illustration, and allows a more radical contrast of the gun control debate. The gang’s zealous nature invites the audience to consider their own stance respective to the gun control debate, allowing opportunity for reflection and possible reconsideration of their own preconceived standpoint. The cast’s inflated sense of worth and (lack of) payoff in their shortcomings...
Words: 1070 - Pages: 5
...the core traits of a tragedy, it becomes apparent Macbeth is ultimately responsible for his tragedy and his downfall as an individual, because it was his own hubris which drove him to bring about the prophecy he heard. To acknowledge this fully, one must first simply observe both the actions of Macbeth and the core elements crucial to a tragic hero, as according to Aristotle for the sake of consistency in a historical theme of narrative. Aristotle’s traits of a tragic hero are as follows: a noble birth, Hamartia, Peripeteia, Anagnorisis, and Catharsis. To begin with, the first element of a tragedy we are faced with in Macbeth is of being of a noble...
Words: 1432 - Pages: 6
...demonstrates his leadership on behalf of his crew, and shows hubris. During his journey home to Ithaka, Odysseus and his crew face and overcome many kinds of obstacles. One of the obstacles is the Kyklopes, a one-eyed beast who lives on an island. Because of the threat of the Kyklopes, Odysseus must use his leadership to help his men escape so they can go back to Ithaka. Although Odysseus’ leadership is substantial, his hubris and his identity make the Kyklopes more of an obstacle than he needs it to be. Odysseus demonstrates his leadership by providing a course of plan to escape the island of Kyklopes. During Odysseus’...
Words: 952 - Pages: 4
...For example, Beowulf had to accept because of a favor that he owed the King of the Danes, and Sir Gawain had to go look for the Green Knight because of his promise to him. All three heroes had to “cross the threshold” in order to finally confront their challenges head on (Vogler 3). This confrontation forces the heroes to commit to entering the “Unknown World”, from which there is no turning back (Harris 5). The hero faces many problem along way such as monsters and strange new lands. The heroes even have similar weaknesses that tends to slow them down. The most important and obvious one is their hubris ,a characteristic that all great heroes share. One of the most well known example is the hubris that Odysseus exhibits throughout the epic. One prominent instance in which Odysseus shows hubris is while he and his are trying to escape from the Cyclops, Polyphemus. They enticed the Cyclops to “try this wine” until it passes out, and then stab its eye out with a sharpened stick. The enraged Cyclops wakes up and began to look for Odysseus and his men. In the process, the boulder blocking the entrance of the cave was removed ,so Odysseus and his men was able to...
Words: 551 - Pages: 3
...Throughout literature, there are characters, through their own pride and ambition, that eventually cause their own failure. Hubris, first coined by the Ancient Greeks, is defined as, extreme pride and arrogance shown by a character that ultimately brings about his downfall" (Literary). This character flaw can be used to analyze works, and the characters within them. One such example is within The Elephant Man, a character named Treves. Through his own strivings for accomplishments, he not only leads the protagonist Merrick, down a disappointing path, but also harms his place in society and Merrick's as well. Treves is first made aware of Merrick, when he is hired by the London Hospital. Treves, full of confidence, is assigned Merrick, a horribly disfigured man, in hopes of treating him, or helping him integrate into society. This is when Treves' hubris becomes a driving force for his actions. Treves is warned by Gomm, his superior to count his blessing, and offers his apologies for what his task will do to his life. However Treves is filled with hubris, and declares," A scientist in an age of science. In an English Age, an Englishman. A...
Words: 822 - Pages: 4
...…….. (REFER TO QUESTION HERE) Every text is a product of its time and may reflect changing values and differing perspectives……. (Which can significantly enhance an audiences understanding of that time and context). The capacity of such values to be ultimately universal is seen within Mary Shelley’s 19th Century Gothic novel Frankenstein and Ridley- Scott’s sci-fi thriller Blade Runner. Despite being written centuries apart both remain powerful reminders and critiques of humanity’s infatuation with science and technology and the dangers of human hubris. Both Shelley and Scott reveal these values through the integration of literary and cinematic techniques …….. (To challenge the established values of their time... However the different time periods influenced the textual form, so the way these values are represented are different, and yet the same message is explored) The context of Frankenstein/ The modern Prometheus is the product of Industrialisation and Romanticism. The novel is ultimately emblematic of the Romantic era, and is in essence a revolt against the period of scientific development, that is Englightment. This period, to quote William Blake of the “dark, satanic mills” spread progress yet at the sacrifice of the natural world…….. Shelley’s cautionary tale is accentuated metaphorically through the tragic character of Victor who forms an obsession with science and technology, in his quest to create life. As Victor recounts his ordeals, his obsession with his project...
Words: 861 - Pages: 4
...Wouldn’t it be cool to learn about a character who is hubris and caring at the same time? Yes it would be cool so lets talk about it, but first let me explain the purpose of the essay, the purpose of the essay is to try to get people interested in The Odyssey, and to teach about the greek mythology legends. The book is called The odyssey by Homer and the book is called Oh Brother Where Art Thou by the director named Joel and Ethan Coen which is also the writers of the movie as well. Odysseus is very caring and loving especially on Calypso’s island when Penelope and Odysseus were hugging. Another reason on how Odysseus is showing that he is caring and loving is when him and Penelope are also crying while they are hugging. In the movie...
Words: 620 - Pages: 3
...disobedience in a very fluid method; “ One has moral responsibility to disobey unjust laws.” When acting upon civil disobedience, there has to be a reasonable and non arrogant approach to the problem in which peacefulness is the main trait being expressed. In Sophocles’s play Antigone Creon produces the law stating no one is allowed to bury the body of the fallen soldier, Polyneices because of his traitory towards the state. Directly defying that law, Antigone portrays civil disobedience by burying the body and performing rites. Antigone’s unpeaceful approach to what she thinks is an unjust law is what renders the civil disobedience ineffective. The stubborn tone in Antigone’s voice and unwillingness to reason for her cause along with having much hubris results in the consequences that are put upon her . Civil disobedience will prove to be ineffective if the approach is not in a peaceful manner and the doer has arrogance, stubbornness, and the unwillingness to reason. Antigone’s uses a bold, unpeaceful approach which states that she doesn’t want to reason for her cause, exhibiting her stubbornness. When Creon asks if Antigone knew about the law stating that no one is to bury the body of Polyneices, Antigone responds in an insulting manner; “ So for me, at least, to meet this doom of yours/ is little pain. But if I had allowed /my own mother’s son to rot, an unburied corpse-/ that would have been an agony! This is nothing./ And if my present actions strike you as foolish,/ let's just...
Words: 753 - Pages: 4
...is the story of Arachne, who pridefully claims superiority to the goddess of weaving, and is transformed into a spider because of it. Likewise, the story of Niobe also represents the negativity of pride. Niobe is extremely prideful in her ancestry and her children, mocks and disrespects the goddess Latona (the mother of Phoebus and Phoebe), and is therefore punished with the death of her children. Ovid uses these two stories to depict the danger of hubris. Arachne, full of hubris, challenges...
Words: 1655 - Pages: 7
...Assignment 2: My Firm’s Acquisition Lakisha Cochran Professor Cheryl Toops ITB 305 May 25, 2012 Lakisha’s Steel Distribution Acquisition As a CEO, you are trying to acquire a foreign firm. The size of your firm will double, and it will become the largest in your industry. What does your firm do and what does the foreign firm you are trying to acquire do? Where are the firms based? As a CEO of Lakisha’s Steel Distribution & Co, we aim to supply steel to different companies for; construction purposes, building appliances, building new homes, building bridges, and we supply steel to many other companies for other various reasons. The firm that we are trying to acquire is Durudee’s Metal Co; we are trying to acquire this company because they are the leading distributer worldwide when it comes to metals. Acquiring Durudee’s Metal Co. will give us a competitive advantage over our competitors because we will be the leading distributer over steel and metal. Durudee’s Metal Co, is located in Hat Yai, Thailand whereas Lakisha’s Steel Distribution is located in Charlotte, North Carolina. You are very enthusiastic about the opportunity to be a leading captain of industry and the associated power, prestige, and income. (You expect your salary, bonus, and stock option to double next year). However, you are troubled by the fact that 70% of mergers and acquisitions (M&As) reportedly fail. How...
Words: 1040 - Pages: 5
...William Shakespeare’s The Tragedy of Julius Caesar, set in Rome in 44 B.C, focuses on the character of Julius Caesar and his gruesome assassination by the members of the Roman Senate. Mark Antony, Caesar’s best friend, plots his revenge and incites a riot, causing the exile of the conspirators and their impending defeat. The tragic hero with a tragic flaw can be found in the character of Julius Caesar, an example of this being Caesar’s prominence in society as well as his fatal flaw of hubris. Another example is Caesar’s recognition of his fatal flaw following his betrayal and downfall. A third example is Caesar’s redemption, when his death is fully grasped by Marcus Brutus, who was once Caesar’s friend but betrayed him. The tragic hero is Julius Caesar because of his fatal flaw of hubris, his recognition of his flaw in his...
Words: 1290 - Pages: 6
...In both the epic, The Odyssey and movie, Oh Brother, Where Art Thou, the Odysseus characters act similarly. Both Clooney and Odysseus are the leaders and spokesmen for the group. Meaning, both men have hubris and make all the decisions that affect the group. In the epic, Odysseus’ life starts declining after blinding the cyclops, when he gives away his identity. Odysseus wants the cyclops to know his name so he will seem more heroic to other travelers for blinding him. It was giving away his identity, because of his hubris, that put his whole crew at risk. Same in Oh Brother, Where Art Thou, George Clooney has unlimited amounts of hair gel which he commands everyday. The police dogs track the friends from the scent of the hair gel. The hair...
Words: 305 - Pages: 2
...Macbeth, A Tragic Hero (Final) Each one of Macbeth’s decisions in life applies to one or all of Aristotle’s characteristics of the theory of a tragic hero in The Tragedy of Macbeth, William Shakespeare’s play. Each one of his characteristics identifies him as a true tragic hero. Macbeth is a tragic hero because not only does he do wrong throughout his life, but he does it for his own benefits. Hubris, one of the characteristics, is Macbeth’s excessive pride, giving others the sense of him being too cocky. With overconfidence Macbeth states, “And mingle with the English epicures./The mind I sway by and the heart I bear/Shall never sag with doubt nor shake with fear" (5.3.9-11). He undergoes hubris when they open up his future, leading him...
Words: 786 - Pages: 4
