This dissertation examines two corporate governance concerns in making mergers and acquisitions (M&A) transactions: principal-agent conflict and board of directors (BOD)-stakeholders conflict. Principal-agent conflict is the contention between shareholders and BOD. Meanwhile, BOD-stakeholders conflict concerns with the differences between BOD and other actors having a stake at the company, such as employees, suppliers and customers. Although there are several reasons why each conflict occurs, they normally originate from the diverge interests between two actors. When confronting with these conflicts in M&A transactions, the BOD arguably has an ultimate decision-making power and must act in the interests of the shareholders as a whole, while stakeholders’ interests should also be taken into account for the long-term wealth of the company.
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