Acquisitions by Small and Medium Enterprises
نویسندگان
چکیده
The theory of mergers and acquisitions (M&As) has been developed almost exclusively from the study of large deals by large firms. In this paper we argue that the behaviour and success of M&As by small and medium sized enterprises (SMEs) may be significantly different. Accordingly, we revisit established M&A theories, and develop a theoretical framework, and several testable hypotheses, regarding the distinctive features of SME M&As. Our empirical results support our expectations and show that, compared to large firms, acquiring SMEs: rely more intensively on external growth via M&As; are more likely to be withdrawn, suggesting that SMEs are more flexible, and more able to avoid deals that turn sour; and, finally, SME M&As are more likely to be financed with equity rather than debt, indicating that the influential financial pecking order theory is of less relevance to SMEs.
منابع مشابه
Identify and Design National Entrepreneurial Making Culture Model By To Small and Medium Enterprises (SMES)
Development of modern economy without private sector and high vigilance entrepreneurs is vital to identify opportunities and use of opportunities around the world. In this regard, identifying the influencing factors on emergence and development of entrepreneurship culture can be effective to promote entrepreneurship in our country. For this purpose, the main issue in this study is to identify t...
متن کاملExploring relationship between the development of small and medium scale enterprises and the employment of universities graduate
BACKGROUND AND OBJECTIVES: Over recent years the employment creation discussion was massively raised especially about university graduates and demands from Iran's government increased. The prediction of the youth unemployment rate during the period from 2015 to 2021 showed that with an annual growth rate of 5%, in the last year of the period, the unemployment rate for youth wou...
متن کاملThe Extent of Utilization of E-Marketing Application by Small and Medium Enterprises in South Eastern States of Nigeria
The need for small and medium scale enterprises to utilize information and communication technology (ICT) applications to boost their business necessitated this study which bordered on assessing the extent of utilization of e-marketing applications by small and medium enterprises in South Eastern States of Nigeria. Two research questions guided the study. Two null hypotheses were tested at 0.05...
متن کاملSocial Entrepreneurship as an Instrument to Empowering Small and Medium Enterprises: An Islamic Perspective
Small and Medium Enterprises (SMEs) are reckoned as the main player in domestic economic activities. This paper tries to contribute to the development and understanding of SMEs by encompassing social entrepreneurship as an empowering instrument. Considering the latest thought for intellectual milieu, this paper discloses the buried interlocking principles for social entrepreneurship by Islamic ...
متن کاملImplementation of Agile Manufacturing Principles in Small and Medium Enterprises (SMES)
Modern manufacturing is under ever increasing pressure to develop solutions for highly complex tasks. In order to maintain the business survival in a highly competitive environment, it is vital to obtain customer satisfaction, which requires developing products with shorter lifecycles and higher quality meanwhile to reduce the production costs. In order to achieve such objectives a paradigm has...
متن کاملIdentification and design of factors influencing nationalist of consumer by protection approach from small and medium enterprises (SMEs)
Supporting production and consumption of domestic goods is always a top priority in our country's economic and trade policy and a common approach in this regard, political and legal support and encourage the consumption of domestic goods by utilizing and stimulate patriotic feelings and pushing these feelings to use domestic goods and establish business of entrepreneurs. On this basis, the main...
متن کامل