An Introduction to Mergers, Acquisitions, and Other Restructuring Activities

DePamphilis, Donald M.

doi:10.1016/b978-0-12-815075-7.00001-2

Cited by 25 publications

(16 citation statements)

References 120 publications

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“…CBAs are the most common form of Chinese OFDI (Xie and Wang, 2022): 92% of Chinese OFDI into the USA has taken the form of acquisition, whereas CBAs accounted for only 62% of the global FDI value in 2018 (UNCTAD, 2019). In comparison to greenfield FDI, CBAs provide faster access to foreign markets and strategic assets, despite their postacquisition integration costs (DePamphilis, 2019; Parente et al , 2020; Zhang et al , 2019).…”

Section: Literature Methods and Hypothesesmentioning

confidence: 99%

Fleeing from systemic risk at home through cross-border acquisitions

Shao¹,

Wang²,

Xie³

et al. 2023

MBR

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Purpose Viewing the domestic downside risk as a “pushing” factor for outward foreign direct investment (OFDI), this study aims to examine the surge in Chinese cross-border acquisitions (CBAs) between 2008 and 2017, a unique window when private firms in China were allowed to conduct CBAs. Design/methodology/approach This study examines the effect of down-side risk on cross-border acquisition performance by using the sample of Chinese A-share listed companies from 2008 to 2017. Specifically, this study considers three kinds of systemic risk, systematic risk and idiosyncratic risk, and respectively examines their impact on CBAs activities; this study also investigates their subsequent results after CBAs activities. The contingency effect of state ownership on the above relationship is also discussed. Findings The findings reveal that pre-CBA systemic risk explains the volume of CBA activities; CBAs are followed by a reduction in systemic risk; the interactions between systemic risk and CBAs decrease with the level of state ownership; and the above results do not hold for traditional risk measures (i.e. systematic risk and idiosyncratic risk). Originality/value This study contributes to the literature by revealing the role of systemic risk as a “pushing” factor in the context of OFDI and suggesting an alternative explanation for CBAs from China: Chinese firms (especially private firms) took advantage of the rare opportunity between 2008 and 2017 given by the government to transfer assets overseas through CBA.

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Section: Literature Methods and Hypothesesmentioning

confidence: 99%

Fleeing from systemic risk at home through cross-border acquisitions

Shao¹,

Wang²,

Xie³

et al. 2023

MBR

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“…There exists a large literature studying the market power in different industries. For example, the market power theory, presented by Depamphilis (2019) in his book, states that uniting two companies in the same industry, it would cause production costs to be low so that the firm is more competitive in the market. In an attempt to examine the relationship between mergers and market power in the steel industry in the USA.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Mergers and Acquisitions Increase Market Share and Financial Performance: Evidence from Two Deals in the US Banking Industry

Tran¹

2023

OJBM

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How does the difference in financing influence the M&As' effects on businesses in the banking industry? Case study method is applied to evaluate two deals, which are BB&T & SunTrust and KeyCorp & First Niagara Financial Group (one all-equity financed and one cash & equity financed). It is concluded that 1) the activity does increase market share, financial performance, and shareholders' abnormal return; 2) financing does affect the impacts of M&As, as deals paid by cash & equity have a more remarkable improvement in financial performance and shareholders' return after M&A.

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“…, 2010, p. 59). Second, the level of sharing common suppliers and customers is even more important in M&As as the post-M&A integration typically involves the consolidation of merging firms' suppliers, production facilities and customers (DePamphilis, 2019; Langabeer and Seifert, 2003). In this case, the success of post-M&A supply chain integration is an important prerequisite for synergy creation (Hitt et al.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…However, without effectively integrating the supply chains of the acquiring and target firms, it is challenging to achieve these goals (Chakkol et al. , 2018; DePamphilis, 2019; Harford et al. , 2019; Langabeer and Seifert, 2003).…”

Section: Introductionmentioning

confidence: 99%

Supply chains and the success of M&As: investigating the effect of structural equivalence of merging firms' supplier and customer bases

Chae

Son

Yan

et al. 2022

IJOPM

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PurposeThis study investigates the extent to which structural equivalence between acquiring and target firms is associated with post-merger and acquisition (M&A) performance—a relationship that is proposed to be moderated by industry-level vertical relatedness between acquiring and target firms.Design/methodology/approachApplying social network analysis and regression, this study analyzes a buyer–supplier relationship network dataset of 279 M&A deals completed between 2010 and 2017 to test the hypotheses. Structural equivalence is measured as the proportion of common customers and suppliers between an acquiring firm and a target firm.FindingsSupporting a view about the importance of supply chains in explaining M&As outcomes, the results suggest that the structural equivalence in the supplier network is positively associated with post-M&A firm performance. The results also show that the effect of the structural equivalence in the customer network is moderated by vertical relatedness between two merging firms (i.e. structural equivalence contributes to post-M&A performance when vertical industry relatedness is high).Originality/valueThis study contributes to the M&A and supply network literature by investigating the performance implications of structural equivalence in supplier and customer networks, demonstrating the importance of taking a supply chain view when explaining M&As outcomes. Specifically, the authors suggest considering structural equivalence as a new type of relatedness between merging firms (i.e. relatedness in network resources in explaining post-M&A performance). It also indicates how industry-level vertical resource relatedness, which is about relatedness in internal resources between the two firms, could interact with firm-level network resource relatedness, which is about relatedness in external supply chain resources between the two firms, in affecting post-M&A performance.

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An Introduction to Mergers, Acquisitions, and Other Restructuring Activities

Cited by 25 publications

References 120 publications

Fleeing from systemic risk at home through cross-border acquisitions

Fleeing from systemic risk at home through cross-border acquisitions

Do Mergers and Acquisitions Increase Market Share and Financial Performance: Evidence from Two Deals in the US Banking Industry

Supply chains and the success of M&As: investigating the effect of structural equivalence of merging firms' supplier and customer bases

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