Exploring governments' role in mergers and acquisitions using IVIF MULTIMOORA-COPRAS technique

Abstract

PurposeExisting studies have found that most merger and acquisition (M&A) activities do not create the intended synergy. These studies have mainly investigated how firms' internal factors contribute to M&A successes or failures. The current study differs from the earlier ones by exploring how governments' activities can contribute to the creation of acquisition synergy.Design/methodology/approachA novel technique based on multi-objective optimization by ratio analysis and complex proportional assessment method under an interval-valued intuitionistic fuzzy (IVIF) environment is proposed to prioritize these government roles needed during the M&A process focusing on the Chinese M&A market.FindingsEnactments of regulations and loan guarantees are the most important strategies to help Chinese acquirers overcome acquisition failures. While tax relief ranks third, government training support ranks fourth. Finally, the result shows that government institutional support is the least to help acquirers overcome acquisition failures.Practical implicationsThe government has a role to play in the acquisition success. Although this study has prioritized governments' role in relative importance order, the authors recommend that governments capable of providing all these strategies should do so without any specific order. However, if otherwise, governments should not neglect the strategies with less weight completely but rather consider reducing capital allocations to such strategies. Moreover, this study shows how firms with stronger business ties with government officials may enjoy success during acquisition activities. The authors recommend that firms intending to make acquisitions develop stronger ties with governments in order to benefits from governments.Originality/valueThis is the first study to develop a theoretical framework showing how government can contribute to M&A success. The study achieves this by extending Keynesian's arguments and identifies five (5) ways in which governments can ensure acquisition success. Second, within fuzzy multi-criteria decision-making (F-MCDM) research, this study is the first to show the applicability of integrated multi-objective optimization by ratio analysis (MULTIMOORA) and complex proportional assessment (COPRAS) techniques in an IVIF environment. The novel methodology proposed in this study offers an insightful research method to future studies focusing on group decision problems.

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“…MULTIMOORA has been applied recently by many researchers in areas including the selection of electric vehicle charging stations (Rani and Mishra, 2021), assessment of solid waste management techniques (Garg and Rani, 2022), comparison of nuclear reactors (Fernández and Vergara, 2021), hotel selection (Peng et al. , 2021), developing a risk evaluation methodology for the healthcare industry (Zolfaghari and Mousasvi, 2021), exploring governments' role in mergers and acquisitions (Opoku-Mensah et al. , 2021), supplier selection (Liu et al.…”

“…Next, studies can bring a different perspective to decision-making by developing extensions of methods such as FUCOM, BWM, and SWARA under mGqNN. Furthermore, the application of robust optimization ( € Ozmen et al, 2017;Kara et al, 2019) can be taken into account and compared to the studied methodology.…”

Evaluation of Smart Sensors for Subway Electric Motor Escalators through AHP-Gaussian Method

“…It is possible to investigate the recent fuzzy approach through PyIFDM [99], Fuzzy TO-PSIS [100], F-SWARA'B, and F-CoCoSo'B, [101] Ct-SFS [102], and SFAHP [103] for similar applications. Other recent methods or frameworks such as SVN-COPRAS, SVN-TOPSIS [104], IVIF MULTIMOORACOPRAS [105], AHP-COPRAS [106], SAPEVO-H 2 [107], ECOPRAS [108], SPC [109], TOPANSIS [110], MPSI-MARA [111], MEREC-MARCOS [112], or PROMETHEE-SAPEVO-M1 [113] are examples of models that could be evaluated for adherence to this application, seeking comparative results and different analyses.…”

Russian merger control: in favor of foreign companies?

“…One of the key issues studied is the influence of the government and related measures of state policy to support or deter such transactions (Angulo-Ruiz et al. , 2019; Opoku-Mensah et al , 2021). A need for a thorough study of merger control has been noted, for example, in Kumar and Sengupta (2020).…”