A unified theory of forward‐ and backward‐looking M&As and divestitures

Ma, Qing; Wang, Susheng

Abstract

In a unified theory of forward-and backward-looking M&As and divestitures, an M&A today may be a cause for a divestiture in the future; conversely a divestiture today may be a consequence of an M&A in the past. M&As and divestitures are not only two sides of the same coin, they are also causes and consequences of each other. In this paper, in a two-period model, two firms consider integrating or separating in each period. We analyze forward-and backward-looking M&As and divestitures, and compare them with static M&As and divestitures.

Citation

Ma, Q., & Wang, S. (2018). A unified theory of forward‐ and backward‐looking M&As and divestitures. European Financial Management, 24(3), 418-450. https://doi.org/10.1111/eufm.12131

• Journal Article Type: Article
• Acceptance Date: Feb 14, 2017
• Online Publication Date: Oct 5, 2017
• Publication Date: 2018-06
• Deposit Date: Jun 8, 2020
• Publicly Available Date: Nov 13, 2020
• Journal: European Financial Management
• Print ISSN: 1354-7798
• Electronic ISSN: 1468-036X
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 24
• Issue: 3
• Pages: 418-450
• DOI: https://doi.org/10.1111/eufm.12131
• Keywords: unified framework; forward looking; backward looking; M&A; divestiture JEL classification: G34
• Public URL: https://nottingham-repository.worktribe.com/output/4605487
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/eufm.12131
• Additional Information: This is the peer reviewed version of the following article: Ma, Q, Wang, S. A unified theory of forward‐ and backward‐looking M&As and divestitures. European Financial Management. 2018; 24: 418– 450. https://doi.org/10.1111/eufm.12131, which has been published in final form at https://doi.org/10.1111/eufm.12131. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.