Research in the strategy and international business literatures shows that firms often undertake acquisitions in order to exchange firm-specific resources. The core arguments arise from theories of market failures, where market failures can stem from potential opportunism or from coordination difficulties. However, empirical research on cross-border and domestic acquisitions has not been able t...

It has become conventional wisdom that acquirers suffer – by over-paying for targets and then suffering post-acquisition chaos. Indeed, there is almost a cottage industry among analysts in decrying acquisition problems, pointing to the ‘winner’s curse’ in which the high bidder over-pays and then fails to gain predicted synergies. At the same time, newspapers and magazines daily highlight failed...

A common view in the literature is that the director labor market provides an ex post settling-up for past decisions by rewarding CEO ability and actions that are consistent with shareholder interests. In this paper we focus on large CEO acquisition decisions to investigate whether the director labor market offers ex post settling-up for value destroying decisions. Prior studies have found that...

 what a merger is and how it differs from an acquisition;  some of the reasons why companies merge;  the underlying merger rationales;  what a merger driver is;  what the primary merger drivers are;  the difference between horizontal integration, vertical integration and conglomeration;  the basic merger lifecycle and lifecycle phases;  some basic measures of success for mergers;  the ...

Studies examining value creation in cross-border acquisitions are few, and there are none that compare value creation of domestic vs. cross-border acquisitions. Institutional differences (at both the firm and industry level) may, in addition to economic factors, cause systematic differences in the value created by cross border vs. domestic acquisitions, thus affecting a firm’s international com...

The fifth merger wave in the USA and the parallel fourth merger wave in the UK that occurred in the 1990s was characterised by a large number of acquisitions of firms operating in high technology areas such as the telecommunications, computers, the Internet, biotechnology, communications etc. These mergers accompanied and, in fact, were triggered by stunningly high market valuations of high tec...

From the perspective of goodwill generated by mergers and acquisitions, this paper analyzes reasons for huge high-premium acquisitions asset-light enterprises influencing factors impairment, finds out adverse consequences puts forward some measures to prevent risk impairment caused so as make more objective rational in future minimize negative impact acquisitions.

We estimate continuous-time event-history models of the acquisition of conglomerate vs. non-conglomerate and predatory vs. friendly acquisitions among the 1962 Fortune 500 between January, 1963, and December, 1968. Our analysis of predatory acquisitions reveals that there were strong disciplinary motivations for these acquisitions in the 1960s. Q ratios were, by a large margin, the most importa...

We estimate the effect of acquisition performance and activity on CEO compensation for full set CEOs large public U.S. corporations in Execucomp database over period 1992-2016. Most previous work has focused publicly traded targets. focus comparison between private targets, showing significant differences two. One primary finding, based panel data regressions (both fixed random effects) is that...