Cultural differences and shareholder value in related mergers: linking equity and human capital
Article Abstract:
The relationship between perceptions of cultural differences of acquired companies' management teams and stock market gains for the acquiring firms was studied. The aim of the study was to test the hypothesis that the cultural fit between the managements of merging firms influences the interaction between shareholder gains and the relatedness of the merging organizations. Questionnaires were mailed to a random sample of 198 acquired companies, but the final sample of firms was reduced to 30. Based on these responses, the independent variables of cultural differences and tolerance of multiculturalism, and the dependent variable of financial performance were statistically analyzed. Results revealed an inverse intercorrelation between shareholder value and the perceptions of acquired managers' of the cultural differences between their companies and their new owners.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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Sources of value in takeovers: synergy or restructuring - implications for target and bidder firms
Article Abstract:
It is presupposed that synergy or restructuring can serve as a source of value in takeovers such that the dominance of the synergy factor acts as a prerequisite to a target firm's assent to a takeover. The analysis of 577 tender offers from 1963 to 1986, however, shows that restructuring, instead of synergy, serves as the stimulus for takeovers, with target firms showing an ability to independently create value from takeovers. This necessity for restructuring is observed for various industry-types with the source of the takeover value generally located in the target firms. Characteristic to target firms which do not undertake restructuring is a loss of takeover value subsequent to the rejection of the initial tender/merger offer.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1992
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Types of synergy and economic value: the impact of acquisitions on merging and rival firms
Article Abstract:
Through the ability to either charge higher prices or reduce costs (or both) the strategy of acquisition becomes a means by which economic value can be created. Three classes of resources that are related to this creation of value are viewed, namely cost of production related, cost of capital related, and price related. The conclusion from the research demonstrates the relationship between collusive synergy and highest value.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1986
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