Merger and acquisition motives and outcome assessment. (14th February 2018)

• Record Type: Journal Article
• Authors: Hassan, Ibne; Ghauri, Pervez N.; Mayrhofer, Ulrike
• Is Part Of: Thunderbird international business review. Volume 60:Number 4(2018)
• Page Start: 709
• Page End: 718
• Publication Date: 2018-02-14
• Subjects: mergers and acquisitions -- motives -- outcome assessment -- performance criteria -- process research; Commerce -- Periodicals; International trade -- Periodicals; 382
• DOI: 10.1002/tie.21967
• Languages: English
• ISSNs: 1096-4762

Abstract

Abstract : Research on merger and acquisition (M&A) outcome often focuses on tangible financial results and the reaction of stock markets. This research attempts to provide a more accurate assessment of M&A performance by linking tangible as well as intangible M&A motives to outcome assessment. The theoretical framework is based on evaluation theory. We analyze four case studies of international M&As conducted by European companies. The findings indicate that M&A outcome can be more accurately measured by aligning it with the motives defined by the acquiring firms. They suggest that M&A outcome assessment should be considered as a process covering both premerger and postmerger stages.