Quasi - Rationality in Action：A Study ofpsychological factors in merger decision-making.doc

Quasi - Rationality in Action：A Study ofpsychological factors in merger decision-making QUASI-RATIONALITY IN ACTION: A STUDY OFPSYCHOLOGICAL FACTORS IN MERGER DECISION-MAKINGby*James A. FantoThis Article shows how recent behavioral and psychological literature is usefulfor understanding merger decision-making by conducting a psychologically-oriented empiricalstudy that reveals the presence of psychological motivations or factors in mega-merger decision-making. The data set is the 710 largest stock-for-stock mega-mergers for each of the last threeyears–the heyday of the mega-mergers. It firs