Investigating the economic role of mergers

Andrade, Gregor; Stafford, Erik

doi:10.1016/s0929-1199(02)00023-8

Cited by 330 publications

(232 citation statements)

References 20 publications

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“…Second, as Andrade and Stafford (1999) noted, mergers either occur from an excess of profit that can reduce social welfare (e.g., mergers between rivals to rationalize price control), or from the need to survive in response to intra-market forces or perturbations (Andrade, Mitchell, and Stafford, 2001). Organizational mergers of opportunity may lead to cash infusions that promote fragmentation of organizations or internal clusters.…”

Section: Discussion Organization Theorymentioning

confidence: 99%

“…2; in support, social loafing and audience awareness reduce E in groups; in Latane (1981) and Zajonc (1998) respectively; while mergers move to the right along the abscissa in Fig. 2 below and spin offs move along the left, both require E; in Andrade and Stafford (1999).…”

Section: Organizationsmentioning

confidence: 99%

“…If friendly takeovers can be a positive experience for most of the participants, hostile mergers are destabilizing forces across a market but also terrifying for participants in the target organization to experience. Although hostile mergers are an acceptable and possibly beneficial practice among modern businesses (Andrade and Stafford, 1999), some of the practices that apply to hostile mergers are similar albeit less extreme than those practices used by terrorists organizations. For example, if it is able to act, the target organization can initiate a series of steps to defend itself against a hostile takeover by decreasing the likelihood of the merger being consummated (Eq.…”

Section: Terrorism a Preliminary Sketch Based On The Case Studymentioning

confidence: 99%

See 2 more Smart Citations

A quantum metric of organizational performance: Terrorism and counterterrorism

Lawless

Bergman²,

Louçã

et al. 2006

Comput Math Organiz Theor

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Political terrorism and insurgency have become the primary means of global war among states. Lacking comparable military and political means to compete directly with Western civilization, many failed states and tribes have honed the art of asymmetric warfare. But traditional models of organizations do not work under normal or these extreme circumstances, precluding realistic models of terrorism and a fruitful search among alternatives for potential solutions. In contrast to traditional models, we have made substantial progress with a quantum model of organizations, which we further develop in this study with the introduction of a case study of a normal organization in the process of being restructured. We apply preliminary results from our model to terrorist organizations and counter terrorism.

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Section: Discussion Organization Theorymentioning

confidence: 99%

Section: Organizationsmentioning

confidence: 99%

Section: Terrorism a Preliminary Sketch Based On The Case Studymentioning

confidence: 99%

See 1 more Smart Citation

A quantum metric of organizational performance: Terrorism and counterterrorism

Lawless

Bergman²,

Louçã

et al. 2006

Comput Math Organiz Theor

View full text Add to dashboard Cite

show abstract

“…Jensen (1986) and Andrade and Stafford (2004) suggest that firms with higher leverage tend to use their borrowing power as acquirers. Thus, one may simply assume that as the liquidity of a firm increases, this may also leads to the firms to use unused borrowing opportunity to finance the fully owned JVs entry mode.…”

Section: Current Ratiomentioning

confidence: 99%

FDI entry mode choice and ownership structure in Turkish market: A firm-level analysis

Polat

2017

Cogent Economics & Finance

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Abstract:The choice of a foreign firm's entry mode into a host country is a strategic decision which impacts its future survival and success in other countries. By employing multinomial logit regression, this study aims to investigate the impact of the firm's level of financial data on the entry mode decisions of investors and their ownership structure in Turkey from 2005 to 2012. The empirical findings have revealed that larger firms with high rate of profitability ratios are more likely to choose the full-ownership mode over others. On the other hand, a higher rate of return on equity increases the probability of investors choosing the shared-ownership mode.

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“…1 Recent merger studies (Mitchell and Mulherin 1996;Andrade et al 2001;Andrade and Stafford 2004;and Harford 2005), however, have added to our understanding of the determinants of industry-level merger activity and the reasons behind the uneven distribution of aggregate mergers over time. However, these studies largely ignore the role of economic activity (macroeconomic factors) in general and business cycle in particular on industry-level merger activity.…”

Section: Introductionmentioning

confidence: 99%