Mergers redraw the boundaries of the firm. In this paper, we relate incomplete contracts to empirical regularities in the market for mergers and acquisitions. We begin by empirically challenging conventional wisdom about mergers and acquisitions: high M/B acquirers typically do not purchase low M/B targets. Instead, mergers typically pair together firms with similar M/B ratios. To show why this...

The strategy of mergers and acquisitions (M&As) have gained in popularity over the last decade. This paper studied the effect of M&As and technology-driven M&As on post-M&A technological innovation performance of acquiring firms and builted theory model “strategic motives-different types of acquisitions-technological performance” based on the logic mentality "motivation-conduction-performance" ...

Original scientific paper Mergers and Acquisitions (M&A) have a long history but unfortunately a very short lifespan. The high degree of their failure opens up old issues and requires new answers. This paper presents an original view on Mergers and Acquisitions applying the scientific method of analogy with soap bubbles, with a special attention devoted to the ’hard’ and ’soft’ indicators of M&...

 what a merger is and how it differs from an acquisition;  some of the reasons why companies merge;  the underlying merger rationales;  what a merger driver is;  what the primary merger drivers are;  the difference between horizontal integration, vertical integration and conglomeration;  the basic merger lifecycle and lifecycle phases;  some basic measures of success for mergers;  the ...

In this study, we evaluate the impact of R&D intensity on acquiring firms’ abnormal returns by examining 925 Canadian completed deals between 1993 and 2002 that have information on R&D expenditures. While examining the returns to acquiring firm shareholders in the R&D intensive firms we evaluate two competing hypotheses: ‘growth potential hypothesis’ and ‘integration failure hypothesis’. Accord...

this study evaluated the effect of bank consolidation on economic growth of nigeria between the periods of 2006-2015. secondary data were sourced from the central bank of nigeria statistical bulletin and the ndic annual reports between the period of 2006 and 2015. data was analyzed using the ordinary least square (ols) multiple regression technique with the aid of the spss statistical software ...