We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE LONG-TERM PERFORMANCE OF HORIZONTAL ACQUISITIONS.
- Authors
Capron, Laurence
- Abstract
This paper examines how value is created in horizontal mergers and acquisitions. More specifically, it examines the impact of post-acquisition asset divestiture and resource redeployment on the long-term performance of horizontal acquisitions. The data come from a detailed survey of acquiring firm managers and cover 253 horizontal mergers and acquisitions that were initiated by European and U.S. firms in manufacturing industries for the period 1988–1992. This study incorporates insights from the cost efficiency and resource-based theories to propose a model of the effects of asset divestiture and resource redeployment on long-term acquisition performance. Overall, our results show that both asset divestiture and resource redeployment can contribute to acquisition performance, with, however, a significant risk of damaging acquisition performance when the divested assets and redeployed resources are those of the target.
- Subjects
UNITED States; HORIZONTAL merger; MERGERS &; acquisitions; CORPORATE reorganizations; CORPORATE divestiture; UNITED States manufacturing industries; COST effectiveness; INDUSTRIAL management; EUROPEAN corporations; AMERICAN corporations; EUROPEAN Union
- Publication
Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009, 1999, Vol 20, Issue 11, p987
- ISSN
0143-2095
- Publication type
Article
- DOI
10.1002/(SICI)1097-0266(199911)20:11<987::AID-SMJ61>3.0.CO;2-B