Selection, valuation and performance assessment: Are these truly inter-linked within the M&A transactions?

Published on Feb 1, 2016in International Business Review3.64
· DOI :10.1016/j.ibusrev.2015.05.004
Ibne Hassan1
Estimated H-index: 1
Agnieszka Chidlow6
Estimated H-index: 6
(University of Birmingham),
Ana M. Romero-Martínez8
Estimated H-index: 8
(Complutense University of Madrid)
Merger and Acquisitions have been on the rise since the last three decades and as such have attracted considerable attention from the research community. Conclusions drawn by the existing studies indicate that such transactions do not result in a better performance, they erode acquiring firm's shareholders value, and also produce highly volatile market returns. A number of studies have analysed reasons for such inefficiencies and pointed out to several factors behind them. However, to the best of our knowledge, very little attention has been given to the business evaluation process as an influencing factor. Therefore, by providing a holistic view, the aim of this work is to investigate how the components involved in the business evaluation process influence the outcome of Merger and Acquisitions. Overall, the findings reveal that strictly controlled and inter-linked components relating to the business evaluation process have a significant impact on the outcome of the cross-border transactions. Further, the results also point out that if the selection and assessment of target firms is improved, the Merger and Acquisition results will be better.
  • References (111)
  • Citations (4)
#1Eero Vaara (Hanken School of Economics)H-Index: 41
#2Paulina Junni (BI Norwegian Business School)H-Index: 10
Last.Alexei Koveshnikov (Hanken School of Economics)H-Index: 7
view all 5 authors...
#1Agnieszka Chidlow (MMU: Manchester Metropolitan University)H-Index: 6
#2Emmanuella Plakoyiannaki (A.U.Th.: Aristotle University of Thessaloniki)H-Index: 17
Last.Catherine Welch (USYD: University of Sydney)H-Index: 22
view all 3 authors...
#1Jerayr Haleblian (UGA: University of Georgia)H-Index: 14
#2Gerry McNamara (SPbU: Saint Petersburg State University)H-Index: 22
Last.Bernadine J. Dykes (UD: University of Delaware)H-Index: 5
view all 4 authors...
#1Olivier Bertrand (SPbU: Saint Petersburg State University)H-Index: 16
#2Marie-Ann Betschinger (HSE: National Research University – Higher School of Economics)H-Index: 3
#1Yaakov Weber (OU: Open University)H-Index: 2
#2Dalia Rachman-Moore (OU: Open University)H-Index: 1
Last.Shlomo Y. Tarba (OU: Open University)H-Index: 23
view all 3 authors...
View next paperThe Study of Factors Influencing the Success of Acquisitions in the Case of WPP