The Choice among Acquisitions, Alliances, and Divestitures
نویسندگان
چکیده
This paper investigates how firms choose among acquisitions, alliances, and divestitures when they decide to expand or contract their boundaries. The dataset covers 9276 deals announced and completed by 86 members of the Fortune 100 between 1990 and 2000. Our findings support explanations based on resources, transaction costs, internalization, organizational learning, social embeddedness, asymmetric information, and real options, and suggest that these theories are highly related and complementary. We find less consistent support for theories based on agency costs and asset indivisibilities. The strong role of firm attributes explains in part why firms may pre-specify whether they will pursue acquisitions, alliances, or divestitures as part of their corporate strategies. Copyright 2005 John Wiley & Sons, Ltd.
منابع مشابه
Prior Alliances with Targets and Acquisition Performance in Knowledge-Intensive Industries
An important focus of the research on mergers and acquisitions is the conditions under which acquisitions create value for the acquiring firm’s shareholders. Given that the acquisition process is plagued by serious issues of information asymmetry, which are exacerbated in the context of knowledge acquisitions, we examine whether prior alliances with potential targets reduce the information asym...
متن کاملStructural Closure and Exposure: Market Reactions to Acquisitions and Divestitures
This paper develops an exchange-network perspective on corporate diversification and proposes two measures of corporate scope: structural closure and structural exposure. Structural closure focuses on exchanges of goods and services inside the firm and proxies for the potential costs of undertaking them through the market instead. By considering exchange relations inside the firm, this measure ...
متن کاملStrategic Alliances: Bridges Between “Islands of Conscious Power”
Strategic alliances range from unstructured collaborations, through consortia and joint ventures that superimpose new governance structures on existing firms, to transactions that restructure firm boundaries and asset ownership. In this paper, we draw on detailed discussions with practitioners to describe and analyze a rich collection of feasible governance structures. Our model focuses on two ...
متن کاملSTP-M&A.1 Exploring the potential transition from strategic technology partnering to mergers and acquisitions
Exploring the potential transition from strategic technology partnering to mergers and acquisitions This paper studies a number of research topics derived from the basic question: do inter-firm partnerships with different intermediary modes of company organization change over time as one of the companies that were previously cooperating becomes integrated by its partner? As such this contributi...
متن کاملIndustry Determinants of the “merger versus Alliance” Decision
Mergers and acquisitions (M&As) and alliances are potential alternative choices for managers. We propose that three dimensions of industry conditions are likely to be influential in such choices: (1) industry demands on firms to make significant commitment, (2) the environmental pressures for flexibility, and (3) the limitations on firm choices stemming from industry concentration and instituti...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2005