Abandonment of mergers and acquisitions: a review and research agenda. Issue 7 (13th November 2020)

• Record Type: Journal Article
• Authors: Kumar, Deepak; Sengupta, Keya
• Is Part Of: International journal of emerging markets. Volume 16:Issue 7(2021)
• Page Start: 1373
• Page End: 1403
• Publication Date: 2020-11-13
• Subjects: Mergers and acquisitions -- Emerging economies -- Managerial decision-making -- Multinational corporation (MNC) -- Negotiating; Business enterprises -- Finance -- Periodicals; Investments -- Developing countries -- Periodicals; Commerce -- Periodicals; Developing countries -- Economic conditions -- Periodicals; 330.91724
• DOI: 10.1108/IJOEM-12-2019-1056
• Languages: English
• ISSNs: 1746-8809

Abstract

Abstract : Purpose: The purpose of this study is to provide a broad understanding of the pre-completion stage and subsequent abandonment of mergers and acquisitions (M&As). Design/methodology/approach: A total of 117 peer-reviewed, English language articles published in scholarly journals were considered in the review. The approach includes a descriptive evaluation of the literature, coupled with content analysis. The paper uses both positivist and constructivist approaches to qualitative research. The analysis is conducted with the help of R programming and Gephi visualization software. The authors organize the work around the event of outcome/closure of deal proposal. Findings: It is found that earlier studies sampled on domestic M&As in developed economies (DEs). However, the interest of scholars has increased in cross-border deals and emerging economies (EEs) in the last decade. Various factors interact and facilitate the completion/abandonment of good and bad deals. The authors find that complex non-linear relationships exist, and there is a need for studies with other classification techniques focusing on predictive accuracy. Research limitations/implications: The literature review is limited to articles available to the researcher using search terms related to M&A completion/termination. The databases accessed were: ProQuest, Scopus and Web of Science. However, backward snowballing was performed to avoid the omission of relevant articles. Originality/value: The findings and subsequent discussions familiarize researchers and practitioners with an overview of research undertaken in the field of M&A abandonment. The authors find voids within the literature and suggest future research agendas.