What is meant by managerial hubris? In what forms does it appear?
What will be an ideal response?
Managerial hubris is a form of self-delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary.
Managerial hubris comes in two forms:
1. Managers of the acquiring company convince themselves that they are able to manage the business of the target company more effectively and, therefore, create additional shareholder value. This justification is often used for an unrelated diversification strategy.
2. Although most top-level managers are aware that the vast majority of acquisitions destroys rather than creates shareholder value, they see themselves as the exceptions to the rule.
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