The Application of Anchoring Effect on Corporate M&A Transaction

DOI

10.2991/978-94-6463-036-7_108How to use a DOI?

Keywords

mergers and acquisitions; anchoring effect; self-generated anchor; externally provided anchor

Abstract

Corporate M&A transactions have been studied from many perspectives, such as executives’ status and their cognitive bias such as the anchoring effect, which is easily overlooked but has a broad impact. Inevitably, during the M&A process, decision-makers are subject to cognitive biases such as the anchoring effect. Chen Shihua et al. First analyzed the anchoring effect on corporate M&A transactions in 2016. In this essay, based on previous studies, this paper uses questionnaires and experiments to further the role played by self-generated and externally provided anchors during the decision-making process. The experiment found that the self-generated anchor caused a greater impact and its influence is more easily weakened by advisors. This proves that advisors are indispensable and that the anchoring effect is not completely insurmountable.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Mengyu Diao
PY  - 2022
DA  - 2022/12/31
TI  - The Application of Anchoring Effect on Corporate M&A Transaction
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 738
EP  - 743
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_108
DO  - 10.2991/978-94-6463-036-7_108
ID  - Diao2022
ER  -