Session 112

Acquisitions - Before the Deal

Track F

Date: Monday, October 5, 2015

Track X

Time: 16:45 – 18:00

Paper

Room: Governor's Square 12


Session Chair:

  • Sharon James, Arkansas State University

Title: Anticipatory Impression Management in Mergers and Acquisition Announcements

Authors

  • Jing Jin, Rice University

Abstract: This study whether CEOs engage in impression management at firms’ important strategic decision announcements, such mergers and acquisitions in this paper, and whether such impression management works in the short term. We tested hypotheses using S&P 1500 firms from 2002 to 2013. We find that CEOs are more likely to insert strategic noises when acquisition size is large, or when acquire a private target. In addition, CEOs are more likely to release positive information as strategic noises to manage impression, improving market reactions consequently.

Title: Double Down or Walk Away? The Effect of External Pressures on Acquisition Completion

Authors

  • Ram Ranganathan, University of Texas at Austin
  • Anindya Ghosh, Indian School of Business

Abstract: We focus on the outcome of announced acquisition bids, introducing the idea that while some firms push through value-destroying merger deals (errors of commission), others end up abandoning value-creating acquisitions (errors of omission). We examine the role that experience and external pressures play in the decision-making process that may lead to variation in these error types. In a cross-industry two decade sample of 6,325 acquirers, we find that firms that have executed more deals in the past tend to indulge in more risky acquisition behavior, completing deals that at announcement appear to be of inferior quality. In contrast, we find that firms under external pressure from negative analyst ratings tend to withdraw even from value-accretive deals.

Title: Pre-Acquisition Inter-Organizational Relationships between Acquiring and Acquired Firms As a Determinant of Post-Acquisition Innovation Performance

Authors

  • Tamanna Khan, University of Manchester
  • Marcela Miozzo, University of Manchester
  • Chiara Marzocchi, Manchester Institute of Innovation Research

Abstract: This research examines the impact of different types of pre-acquisition inter-organizational relationships between high technology acquiring and acquired firms on post-acquisition innovation performance. It focuses on the question of whether and under what conditions prior relationships between the target and acquirer can lead to better acquisition outcomes. We explore knowledge access in pre-acquisition inter-organizational relationships and analyse whether different knowledge attributes such as whether alliances are exploratory and exploitation affect post acquisition innovation outcome. Our results show supports for the hypotheses that acquisitions with pre-acquisition alliances have better innovation performance than acquisitions without prior alliances.

Title: Searching For Greener Pastures: Acquirer's Reliance on Investment Banks in the Search for M&A premiums

Authors

  • Hyejin Cho, KAIST
  • Yoon-Suk Baik, KAIST

Abstract: How do investment banks’ advisory affect acquisition premiums? Departing from the static focus on the social-network aspect of investment banks in current literature, we use a dynamic context to highlight the search role of investment banks for evaluating target firms. Drawing on the behavioral theory of the firm, we hypothesize that acquirer’s reliance upon prior investment banks for subsequent acquisitions is based upon the relative performance of prior acquisitions to the aspiration level. Performance feedback determines the necessity of intensified search conducted by the acquirer which then determines whether current investment banks are retained for the subsequent acquisition. We further consider how acquisition premium varies with whether acquiring firms retain prior investment banks for the following acquisitions given positive and negative acquisition performance feedback.

All Sessions in Track F...

Sun: 08:00 – 09:15
Session 193: Phenomenon-driven Research in Strategic Management
Sun: 09:45 – 11:00
Session 221: Reflecting on the scope of the firm: New avenues for future research
Sun: 11:15 – 12:30
Session 194: The State and Future of Disciplinary Research in Strategic Management
Sun: 16:15 – 17:30
Session 113: Serial Acquisitions: Strategies and Processes
Sun: 17:45 – 00:00
Session 314: Corporate Strategy Business Meeting
Mon: 08:00 – 09:15
Session 111: Portfolio Management: Diversification and Divestitures
Session 176: Different Perspectives Informing Governance Choices: Partner Choice in Alliances vs. Acquisitions
Mon: 11:15 – 12:30
Session 195: Where Are the Boundaries of Strategic Management Research?
Session 210: M&A/JV Implementation
Mon: 16:45 – 18:00
Session 112: Acquisitions - Before the Deal
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 115: Horizontal and Vertical Scope: Interactions and Embeddedness
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 117: Issues and Answers for the Diversified Firm
Session 145: Strategic Leadership and Corporate Strategy
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 116: Acquisitions - After the Deal
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 110: Models of Corporate Strategies
Tue: 17:30 – 18:45
Session 114: The Interplay Between Financial Markets & Advisors and the Acquiring Firm
Session 271: Spinouts

All Sessions in Track X...

Sun: 08:00 – 09:15
Session 74: Open Strategy Workshops: Lessons Learned from Practising Strategizing
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Session 76: The evolution of the strategy as a profession and the field of strategy
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Session 38: Big Game Hunting: Accessing and Interacting with Senior Executives for Empirical Research
Sun: 13:45 – 14:30
Session 307: Lifetime Achievement Award Recipient
Sun: 14:45 – 15:45
Session 7: New Frontiers in Technologies, Fields, and Business Models: Implications for Academic and Practice Knowledge Creation
Sun: 16:15 – 17:30
Session 61: The Institutional Level of Strategizing Activities
Session 261: Knowledge Creation and Sharing in Virtual Communities
Mon: 08:00 – 09:15
Session 72: External Influences: Audiences and Media
Session 126: Entry Mode & Cross-Border Acquisitions
Session 140: New Perspectives on the Outside Director Selection Process
Mon: 09:45 – 11:00
Session 8: Elevating our Understanding of Organizational Performance: Bridging the Frontiers of Business and Corporate Strategies
Mon: 11:15 – 12:30
Session 149: Management and Coordination of Multinationals
Session 220: Perspectives on CEO Compensation
Mon: 13:45 – 15:00
Session 16: Human Capital and Innovation
Session 37: Political Ties: Knots or Bows?
Session 63: Political and Material Aspects of Strategy Making
Session 97: Accelerators, corporate VCs and new venture creation
Session 258: Explainng CSR: External Factors
Mon: 15:15 – 16:15
Session 227: Mergers, Acquisitions and Divestitures: Reconfiguring Resource Bases for Value Creation and Growth
Session 308: Strategy Beyond the Firm: Creating and Capturing Value from External Resources
Session 310: When the Smoke Clears: The Emergence of the Cannabis Industry
Session 311: Theory Fragmentation in Strategic Management?
Session 312: Climate Change: Why and How Should Strategic Management Care?
Mon: 16:45 – 18:00
Session 42: The Word is Out! Stakeholder Responses to Public Signals of Firms' Behaviors
Session 112: Acquisitions - Before the Deal
Tue: 08:00 – 09:15
Session 309: Looking Good and Sounding Better: Impression Management by CEOs
Tue: 09:45 – 10:45
Session 9: Whatever Happened to Theory in Strategic Management?
Tue: 11:00 – 12:15
Session 70: CEO Characteristics: Microfoundations of Behavioral Strategy
Tue: 14:15 – 15:30
Session 116: Acquisitions - After the Deal
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 219: A Tough Crowd: Critical Examinations by Owners and Stakeholders
Session 262: Pioneering Knowledge
Tue: 17:30 – 18:45
Session 144: Board Structure: What Works Best?
Session 208: Internationalization Strategies and Performance


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