Mergers And Acquisitions

MERGERS AND ACQUISITIONS: strategical - ORGANIZATIONAL FIT AND OUTCOMES1 KYUNGMOOK LEE and JOHANNES M. PENNINGS Department of caution The Wharton give lessons University of Pennsylvania 2000 Steinberg Hall-Dietrich Hall February 1996 We acknowledge the financial corroboration of the Limperg Institute, Amsterdam, Netherlands and the Wharton School at the University of Pennsylvania. We appreciate the clerical assistance of Ilja Gottfried and Maurice Zinken and suggestions from capital of Minnesota Allison, Josef Bruderl, Ranjay Gulati, and Michael Lubatkin. 1 MERGERS AND ACQUISITIONS: STRATEGIC - ORGANIZATIONAL FIT AND OUTCOMES Abstract This report examines the effects of imaging complementarity and organizational compatibility on merger and erudition (M&A) outcomes. We also search the effect of firms previous M&A pick ups. Our investigation focuses on two classes of events following M&As: organizational disintegration and involvement in consequent M&As, wi th the firm continuation following the M&A as the non-event. Using a multinomial logit model for repeated-event chronicle analysis that reflects the dynamics of organizational evolution, we analyse 461 M&As in the history of the Dutch accounting industry.

Our results show that compatibility is not associated with the decay rate only is strongly related with the probablity that a firm will take up in redundant M&As. Resouce complementarity is negatively associated with the odds of prodigality and positively associated with the opportunity to engage in additional M&As. The results also establish that previous M&A experience enhances b oth the dissolution rate and rate to engage ! in additional M&As. 2 INTRODUCTION This paper examines what happens to firms that are created by a merger or acquisition (M&A). We claim that the couplet among merging firms, together with their prior growth history, are significant for understanding the evolution of the newly created organization. Organizational foundation is typically associated...If you want to get a full essay, launch it on our website: BestEssayCheap.com

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