Two Cases of Failure in Merger: Is it Over Confidence? | Zendy

Kalpataru Bandopadhyay | Zendy

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Two Cases of Failure in Merger: Is it Over Confidence?

Author(s) -

Kalpataru Bandopadhyay

Publication year - 2011

Publication title -

interscience management review

Language(s) - English

Resource type - Journals

ISSN - 2231-1513

DOI - 10.47893/imr.2011.1086

Subject(s) - overconfidence effect , due diligence , mergers and acquisitions , context (archaeology) , business , relation (database) , diligence , accounting , actuarial science , finance , psychology , computer science , social psychology , history , archaeology , database

There were high rate of failure in mergers and acquisitions all over the world. Even after due diligence conducted by own qualified staffs and by expert consulting firm, the calculation may go wrong. Many researchers observed behavioural biasness during the decision making process of the deal as one of the causes of such failure. Here, the paper makes an attempt to identify human biasness in relation to decisions regarding mergers with the help of analysing two cases in Indian context. The said mergers could not succeed apparently due to the underestimation of risk by the acquirer probably arising out of the overconfidence

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