مقاله انگلیسی رایگان در مورد عملکرد بلند مدت کسب شرکتها – الزویر 2020

1. Introduction

2. Related studies and research questions

3. Research design

4. Results

5. Conclusion

Appendix: Variable Definitions

Reference

This paper examines the association between the managerial ability of acquiring firms and their long-term performance after mergers and acquisitions (M&As). Based on M&A data for U.S. firms from 2000 to 2012, we find that acquiring firms with higher managerial ability achieve better longterm operating performance and stock returns. We also find that the positive effect of managerial ability on long-term performance is more pronounced when acquirers and target firms belong to the same industry. The result suggests that managers who have higher ability to manage their firms, i.e., to generate higher revenues for given resources, are more capable of achieving higher synergy benefits and better post-acquisition performance in same-industry acquisitions than in cross-industry acquisitions.

Introduction

Pursuing mergers and acquisitions (M&As) is a highly popular investment strategy among firms seeking to boost their corporate growth or strengthen their competitive advantage over rivals. The global volume of M&A deals in 2018 and 2017 reached US$4.1 trillion and US$3.7 trillion, respectively (J.P. Morgan, 2019). The common reason for engaging in M&As is to achieve synergy and efficiency effects, and ultimately to increase the shareholder wealth of acquiring firms (Tuch and O’Sullivan, 2007; Vaara, 2002). Prior M&A studies generally indicate positive short-term returns for target firms (e.g., Martynova and Renneboog, 2008). However, empirical research into acquirer post-acquisition performance has failed to find consistent evidence of improved performance after acquisitions. Agrawal and Jaffe (2000) show that the abnormal returns to acquiring firms in the years following an acquisition are negative, or at best not statistically different from zero. In the meta-analyses of empirical research on post-acquisition performance, King et al. (2004), Tuch and O’Sullivan (2007) and Dutta and Jog (2009) conclude that, on average, M&A activity does not lead to superior financial performance. These studies highlight great variations in acquisition performance, with about 40% of acquiring firms achieving positive returns in the twoto three-year period after acquisitions, and about 50% suffering negative returns.