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A Study on Anchoring Effects of Acquisition Premiums Decision
Author(s): Chen Shihua, Li Weian, Dongbei University of Finance and Economics, Tianjin University of Finance and Economics
Pages: 114-
127
Year: 2016
Issue:
6
Journal: Economic Research Journal
Keyword: Acquisition Premiums Decision; Anchoring Effects; Self-generated Anchor Effects; Experimenter-provided Anchor Effects;
Abstract: Kahneman,the Winner of 2002 Nobel Prize for Economics,summarizes the non-rational factors of decision in overconfidence and anchoring effects. While the existing research only examines the non-rational factors of overconfidence,neglects the research on the anchoring effects in acquisition premiums. Therefore,the paper aims to examine the anchoring effects of acquisition premiums decision. Based on the data of acquisition events from 2004 to 2011,the paper finds that:although the acquisition premiums decisions are dominated by rational factors,there are anchoring effects in a certain degree. The details are follows: when the decision situation only exists the self-generated anchor,the acquisition premiums decision shows the self-generated anchor effects; when the decision situation only exists the experimenter-provided anchor,the acquisition premiums decision shows the experimenter-provided anchor effects; when the decision situation exist both the experimenter-provided anchor and experimenter-provided anchor,the self-generated anchor effects still exist,while the experimenter-provided anchor effects will be weakened or faded. The paper further finds that the consultant will weaken the anchor effects of acquisition premiums decision.
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