This chapter develops a decision-making framework to analyze important dimensions of mergers and acquisitions. Using a PLS approach, we show that strategic deals’ performance – measured by means of synergy realization, relative performance (compared to the competition), and absolute...

Mergers and acquisitions (M&As) typically accelerate target top management team (TMT) executive departures. Market discipline and Relative Standing are two major and competing economic and sociological explanations for this phenomenon which lack a satisfactory theoretical integration. To fill...

We present an empirical investigation into how customers and competitors respond to merger and acquisition (M&A) activity, using data obtained from business-to-business customers of logistics industry acquisitions. We draw on the M&A and marketing literatures to develop a set of hypotheses about...

Research on acquisition performance has not considered the customer perspective for a long time. Based on associative network theory, we propose two spillover effects – forward and reverse – to reflect the effect of acquirer and target reputation on customer responses toward a horizontal...

Top managers rarely have an accurate inventory of the capabilities buried within their firms. Although there are many reasons for such partial knowledge, cognitive biases play an important role for its existence. We argue that managers’ cognitive biases could lead to lost opportunities and...

Following the cultural distance and the acquisition cultural risk propositions, I study the impact of organizational culture differences among merging companies on their short-term stock performance following merger announcement. I assume that on announcement the market cannot access...