The chief benefits of acquiring or merging with another CG company are to create or expand new lines of service or enter new geographical markets and enhance the product portfolio. In economic times where organic growth is hard to come by, these are powerful considerations. Acquiring a smaller player can offer a large CG company greater flexibility and quicker time to market -a key advantage no...

Mergers and acquisitions M&As are the front line strategic option for organizations attempting to have competitive advantage over its competitors. Organizations word-wide spend billions of dollars in pursuit of this strategy. However, the success rate is less then estimable. This is mainly due to the clashes of corporate cultures. The objectives of this theoretical paper are to find out the rea...

The impact of performance compensation commitments on mergers and acquisitions (M&As) has been widely discussed, but no consistent conclusions. By investigating M&A events among A-share firms from 2011–2015, we found an inverted U-shaped relationship between performance. PSM is firstly used to select a paired sample firms’ signing commitments, which test the incentive effect commitments...

This study isolated the effects of acquisitions on the long term risk-return performance of acquiring firms involved in related and unrelated diversifying acquisitions. Confounding effects of multiple acquisitions were controlled by studying only those firms that were involved in a single major acquisition over a ten year period surrounding the acquisition date. Acquisitions did not improve the...