M&A Non-Consummation - A Strategic Option?

This study examines the viability of treating M&A non-consummation decisions (NCDs) as strategic options. A review of published research in strategic management journals reveals that this topic has yet to undergo rigorous academic examination. Putting the M&A non-consummation phenomenon under a strategic management lens, this study asks the following research questions about the acquiring firm: 1) How does an M&A NCD affect the market value of firms? 2) Under what conditions does an M&A non-consummation enhance firms' value? 3) How can an NCD be executed so that it favorably affects the value of the firm? Study data were collected from numerous secondary sources such as CRSP, Ward's Business Directory, Lexis-Nexis Academic Database etc. The study sample size was 158 and for each NCD event, several variables were computed. With cumulative abnormal returns for a (-30, -1) pre-event period -- as a measure of firm performance -- as the dependent variable, multiple regression estimation used the following independent variables: strategic fit, relatedness, cultural fit, timing of NCD and coverage of NCDs. In estimating the regression models, confounding events were identified and controlled for. Several of the study hypotheses are supported, notably the hypotheses pertaining to cultural fit and timing of the NCD. Findings and implications are discussed. Taken as a whole, the study highlights the value of treating M&A NCDs as part of the repertoire of strategic options of acquiring firms.

Grantor dc:publisher

Temple University. Libraries

Year dc:date.issued

2009

Author dc:creator

• Pandey, Sheela

Advisor dc:contributor.advisor

• Kotabe, Masaaki

Committee members dc:contributor.committeemember

• Chi, Tailan
• Hopkins, H. Donald
• Reeb, David

• Business Administration, Management
• Abnormal Returns
• Fit Considerations
• M&a
• Merger Acquisition
• Non-consummation
• Strategic Option

Statement dc:rights

• IN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available.

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Language dc:language.iso

eng

Dc Identifier Other

864884696

OAI identifier oai:identifier

oai:scholarshare.temple.edu:20.500.12613/2091