Beyond Acquisitions: The Financial Impact of Strategic Corporate Alliance-to- Acquisitions
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2024-06-28
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en
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Abstract
Acquisitions are risky events and lead to high transaction costs, but they can be mitigated
through establishing strategic alliances prior to the acquisition which lowers transaction costs.
Acquisitions are measured by stock performance since it signals the shareholder’s expected
synergies and future performance improvements due to the acquisition. This study explores
the correlation of transaction value and acquisition strategy on the stock performance of the
acquirer in high-tech industries. The sample consists of 252 firms and 3,121 acquisitions
from 1990 to 2017. Findings indicate a negative average return per transaction. Neither
transaction value nor acquisition strategy significantly affect stock performance. The study
supports transaction cost theory by emphasizing the importance of minimizing transaction
costs, leveraging strategic alliances, and challenging the opportunistic assumptions of
alliance-to-acquisition strategies. The findings offer valuable insights for managers,
researchers, and policymakers.
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Faculteit der Managementwetenschappen