Resource transfer

Transfer of resources often take place in the field of Busines, Economy and Finance. It is a important aspect for the growth of an organization.

• Empire building: Managers have larger companies to manage and hence more power.

• Manager's hubris: Manager's overconfidence about expected synergies from M&A which results in overpayment for the target company.

• Resource transfer: Resources are unevenly distributed across firms (Barney, 1991) and the interaction of target and acquiring firm resources can create value through either overcoming information asymmetry or by combining scarce resources.