Does merger & acquisition (M&A) strategy matter? A contingency perspective

Angwin, Duncan N.; Urs, Uma; Appadu, Naaguesh; Thanos, Ioannis C.; Vourloumis, Stavros; Kastanakis, Minas N.

Abstract

This paper takes a contingency approach to investigate whether there are market performance variations for different types of M&A. Eight different types of M&A are identified in a typology based upon the conjunction of three contextual dimensions: external environmental, acquiring firm level strategy and CEO motivation. Drawing upon a sample of 1,926 domestic UK deals we evaluate the typology to determine whether the financial markets distinguish between different types of M&A. Results indicate significant market and risk-adjusted performance differences by M&A type. These confirm that a contingency approach to M&A performance has merit. We suggest that the proposed integrated typology, that recognizes the importance of multiple aspects of strategic fit to M&A performance, addresses the paradox that M&A practitioners continue to pursue deals despite widespread acceptance that they result in high failure rates.

Citation

Angwin, D. N., Urs, U., Appadu, N., Thanos, I. C., Vourloumis, S., & Kastanakis, M. N. (2022). Does merger & acquisition (M&A) strategy matter? A contingency perspective. European Management Journal, 40(6), 847-856. https://doi.org/10.1016/j.emj.2022.09.004

• Journal Article Type: Article
• Acceptance Date: Sep 16, 2022
• Online Publication Date: Sep 26, 2022
• Publication Date: 2022-12
• Deposit Date: Feb 1, 2023
• Publicly Available Date: Feb 8, 2023
• Journal: European Management Journal
• Print ISSN: 0263-2373
• Electronic ISSN: 1873-5681
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 40
• Issue: 6
• Pages: 847-856
• DOI: https://doi.org/10.1016/j.emj.2022.09.004
• Keywords: Strategy and Management
• Public URL: https://nottingham-repository.worktribe.com/output/16795791
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0263237322001189?via%3Dihub