The effect of rhythm of acquisitions, extra-entrainment and acquisition experience on M&A performance
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2022-02-03
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en
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Abstract
There have been multiple studies on acquisitions and merger and acquisition (“M&A”)
performance, which showed that firms do not always benefit from acquiring other
organizations. However, limited attention has been given to the effect of timing on M&A
performance. This study examines the effect of rhythm, extra-entrainment and acquisition
experience on M&A performance. By investigating these relationships, this study contributes
to the literature by including a temporal perspective of acquisitions and to the general M&A literature. The hypotheses are tested by investigating 118 firms performing at least three acquisitions over a timespan of twenty years. The results show a U-shaped curve in the relationship between rhythm and M&A performance and indicate that an even-eventpaced rhythm enhances the most M&A performance in the energy and power industry, which is in line with earlier research. In this study, synchronization with competitors does not have a significant effect on M&A performance, as well as acquisition experience. This research builds
a theoretical argument why acquisition experience would be a moderator on the relationship rhythm and M&A performance. The results showed no support for the hypothesis.
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Faculteit der Managementwetenschappen