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14. Many experts agree that many mergers and acquisitions are undertaken NOT for the benefit of shareholders but rather to benefit the managers of the

14. Many experts agree that many mergers and acquisitions are undertaken NOT for the benefit of shareholders but rather to benefit the managers of the acquiring firm.

a.What kind of benefits do managers receive when they undertake mergers that reduce the value of their firms?

b.Give two reasons why corporate governance fails to prevent such mergers.

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