What drives acquisitions?

Petmezas, Dimitris

doi:10.1016/j.mulfin.2008.05.001

Cited by 38 publications

(4 citation statements)

References 27 publications

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“…The only significant deal-related control variable is whether the target company is listed or unlisted. As expected, abnormal returns are significantly higher for acquisitions of unlisted firms (Farinós Viñas et al, 2017;Martynova and Renneboog, 2011;Petmezas, 2009).…”

Section: Abnormal Returns For Acquiring Firms Around Acquisition Anno...supporting

confidence: 53%

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

García

Herrero²

2022

Technological Forecasting and Social Change

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Section: Abnormal Returns For Acquiring Firms Around Acquisition Anno...supporting

confidence: 53%

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

García

Herrero²

2022

Technological Forecasting and Social Change

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“…In order to reproduce the observed scale-free degree distribution of the real-world network, the selection criteria for both link creation and the merging process follow a preferential attachment rule [34]. Previous studies have demonstrated that the merging activity of firms in the real economy follows waves of market sentiment and depends on many factors, for example the size and the stock market performance of the involved firms [35,36]. As a simplification, we do not consider these factors here and utilize the simple assumption of preferential attachment to reproduce the basic statistical characteristics of the real-world network.…”

Section: Basic Modelmentioning

confidence: 99%

“…This improvement of the model leads to the hypothesis that pairs of firms that allocate their input/output similarly show a higher probability to merge. A more detailed investigation of this hypothesis is subject to future studies in order to complement the literature on drivers of the merging of firms [35,36].…”

Section: Impacts Of Merging Preferences and Substitution Of Links On mentioning

confidence: 99%

Motif formation and industry specific topologies in the Japanese business firm network

et al. 2017

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Motifs and roles are basic quantities for the characterization of interactions among 3-node subsets in complex networks. In this work, we investigate how the distribution of 3-node motifs can be influenced by modifying the rules of an evolving network model while keeping the statistics of simpler network characteristics, such as the link density and the degree distribution, invariant. We exemplify this problem for the special case of the Japanese Business Firm Network, where a well-studied and relatively simple yet realistic evolving network model is available, and compare the resulting motif distribution in the real-world and simulated networks. To better approximate the motif distribution of the real-world network in the model, we introduce both subgraph dependent and global additional rules. We find that a specific rule that allows only for the merging process between nodes with similar link directionality patterns reduces the observed excess of densely connected motifs with bidirectional links. Our study improves the mechanistic understanding of motif formation in evolving network models to better describe the characteristic features of real-world networks with a scale-free topology.

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“…Many scholars, such as Daniya et al (2016) and Weitzel & McCarthy (2011), have emphasized that the primary motivation behind M&A is to gain synergy in terms of operating and financial advantages, which can lower costs or increase revenue. Neoclassical theory has been employed by Polemis &Paleologos (2014) andPetmezas (2009). In addition, the behavioral approach has been utilized by Polemis & Paleologos (2014) and Shleifer & Vishny (2003).…”

Section: Theoretical Referentialmentioning

confidence: 99%

The Impact of Bank Size on Pre- and Post- Merger and Acquisition Performance and Stability: New Evidence from GCC and Pakistan

Ullah,

Nor,

Seman

et al. 2023

J. Professional Business Review

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Purpose: This study contributes to the existing literature by providing a comprehensive overview of the complex relationship between level of bank sizes, factors, M&A performance, and stability for banking sectors, Islamic vs conventional banks, and by highlighting the importance of considering the specific characteristics of the banking industry in GCC and Pakistan. Theoretical framework: The conceptual framework is developed and designed based on the theory and in line with the literature review. The theories are resource dependency theory and efficiency theory Design/Methodology/Approach: This paper employs an unbalanced panel data of 24 banks consisting of 10 Islamic banks and 14 conventional banks from GCC and Pakistan, 2004Q1 to 2020Q4. Data is collected from several secondary sources, namely Bloomberg, FitchConnect database, Bank’s financial statement, IMF, and World Bank database. Findings: Our results revealed that bank size has a significant impact on the M&A performance and stability of banks. However, there is no significant difference between pre- and post- M&A performance. Interestingly, smaller banks outperformed larger and medium-sized banks in terms of M&A performance, while larger and medium-sized banks exhibited better bank stability than smaller banks. Interestingly, while looking at Islamic vs conventional banks point of view results show that operational performance of Islamic is better than conventional banks. On the other hand, stability of conventional bank is better than Islamic banks. Research, Practical, & Social implications: The limitations of this research should also be acknowledged and future research should expand the number of observations and including more Islamic banks is essential. Moreover, exploring the impact of cultural and regulatory differences on M&A activities is also an interesting avenue for further research. Additionally, future research should investigate the impact of M&A activities on other performance measures, such as efficiency, productivity, and profitability. Originality/Value: This study aims to fill the theoretical and empirical research gap by examining the impact of level of bank size on pre- and post - M&A activities in the GCC and Pakistan for banking sectors, Islamic banks vs conventional banks

show abstract

What drives acquisitions?

Cited by 38 publications

References 27 publications

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

Corporate entrepreneurship and governance: Mergers and acquisitions in Europe

Motif formation and industry specific topologies in the Japanese business firm network

The Impact of Bank Size on Pre- and Post- Merger and Acquisition Performance and Stability: New Evidence from GCC and Pakistan

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