A cross industry analysis of digital M&As and the subsequent downsizing
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2022-06-27
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en
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In recent decades, digital mergers & acquisitions (M&As) have become more and more prevalent (Hanelt et al., 2021). It is therefore worthwhile to increase our understanding of these phenomena. In this paper, I have contributed to the understanding of digital M&As, and their subsequent downsizing, by investigating the difference between the market perceptions of these events across different industries. The findings suggest that the signal that an M&A in a manufacturing-focused company is, on average, perceived more negatively than an M&A that is conducted in an industry-focused company. Due to the limited significance of the results, however, other relationships could not be proven. The findings also shed light on the different ways in which a digital M&A is perceived as a signal in different markets. It was found that the market responds more positively to a digital M&A conducted in the service or transportation sector than in the manufacturing sector. This can be used as a guideline for managers in these sectors when they are considering their digitalization options
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Faculteit der Managementwetenschappen