Mergers and Acquisitions in different industries – A shareholder perspective
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2020-08-14
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en
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Abstract
The decision to engage in mergers and acquisitions (M&A) is often made to fast. That is proven by the fact that nowadays still a lot of mergers and acquisitions fail. Even though companies worldwide perform about 50.000 mergers per year with a value of 4000 billion, most of these deals still end up as a negative investment. This research was performed by looking at 1726 deals of listed companies that were completed worldwide across all kinds of industries. This paper tested whether the following industry variables affected M&A performance: (1) Labour intensity, (2) Board diversity, (3) Technology intensity, (4) Profitability, (5) Human capital intensity. We did so by making proxies for these variables, because that was the best way to measure these variables. The results show that there is a positive effect of labour intensity and human capital intensity on M&A performance when it comes to cross industry deals or domestic deals. Furthermore, there is a negative effect of board diversity on cross border deal performance. Concluding, this paper opens up the field of research for the role industry factors when it comes to M&A performance.
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Faculteit der Managementwetenschappen