How Swiss small and medium-sized firms assess the performance impact of mergers and acquisitions
Purchase on Springer.com
$39.95 / €34.95 / £29.95*
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.
While previous studies on mergers and acquisitions (M&As) mostly relied on large firms, our study is based on a sample that includes all Swiss M&As that took place in the period 2006–2008, mostly of which have been SMEs. We investigate the firm characteristics that determine the innovation and economic performance of M&As. The performance measures are based on firms’ assessments. These measures are regressed on a series of possible determining factors as postulated in existing theoretical and empirical literature. M&A performance is primarily affected by specific M&A characteristics, but not by general market characteristics such as demand development or competition conditions. Rather astonishingly, it is also not affected by firm characteristics such as capital intensity, human capital endowment and firm size. There is an interesting exception: innovation activities. This means that, with the remarkable exception of innovation activities, the level of M&A performance is determined primarily by factors of the M&A process itself.
- Agrawal, A., & Jaffe, J. F. (2000). The post-merger performance puzzle. In C. Cooper & A. Gregory (Eds.), Advances in mergers and acquisitions (pp. 1–42). Stamford, CT: JAI Press.
- Agrawal, A., Jaffe, J. F., & Mandelker, G. N. (1992). The post-merger performance of acquiring firms: A re-examination of an anomaly. The Journal of Finance, 47(4), 1605–1621. CrossRef
- Bertrand, O. (2009). Effects of foreign acquisitions on R&D activity: Evidence from firm-level data for France. Research Policy, 38(6), 1021–1031. CrossRef
- Bertrand, O., & Zuniga, M. (2006). R&D and M&A: Are cross-border M&A different? An investigation on OECD countries. International Journal of Industrial Organization, 24(2), 401–423. CrossRef
- Bild, M. (1998). Valuation of takeovers. Stockholm: Economic Research Institute at the Stockholm School of Economics.
- Capron, L. (1999). The long-term performance of horizontal acquisitions. Strategic Management Journal, 20(11), 987–1018. CrossRef
- Capron, L., Mitchell, W., & Swaminathan, A. (2001). Asset divestiture following horizontal acquisitions: A dynamic view. Strategic Management Journal, 22(9), 817–844. CrossRef
- Cartwright, S., & Cooper, C. L. (1996). Managing mergers, acquisitions and strategic alliances: Integrating people and cultures. Oxford: Butterworth-Heinemann.
- Cassiman, B., Colombo, M. G., Garrone, P., & Veugelers, R. (2005). The impact of M&A on the R&D process: An empirical analysis of the role of technological- and market-relatedness. Research Policy, 34(2), 195–220. CrossRef
- Cloodt, M., Hagedoorn, J., & Van Kranenburg, H. (2006). Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries. Research Policy, 35, 642–654. CrossRef
- Datta, D. K. (1991). Organizational fit and acquisition performance: Effects of post-acquisition integration. Strategic Management Journal, 12(4), 281–297. CrossRef
- Dutta, S., & Jog, V. (2009). The long-term performance of acquiring firms: A re-examination of an anomaly. Journal of Banking and Finance, 33(8), 1400–1412. CrossRef
- Gugler, K., Mueller, D. C., & Weichselbauer, M. (2012). The determinants of merger waves: An international perspective. International Journal of Industrial Organization, 30, 1–15. CrossRef
- Harrison, J. S., Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (1991). Synergies and post-acquisition performance: Differences and similarities in resource allocations. Journal of Management, 17(1), 173–190. CrossRef
- Hitt, M. A., Harrison, J. S., & Ireland, R. D. (2001). Mergers and acquisitions: A guide to creating value for shareholders. Oxford: Oxford University Press.
- Jensen, M. (1986). Agency costs of free cash flow, corporate finance and takeovers. American Economic Review, 76(2), 323–329.
- Kaplan, S. N. (2000). Mergers and productivity. Chicago: University of Chicago Press. CrossRef
- King, D. R., Dalton, D. R., Daily, C. M., & Covin, J. G. (2004). Meta-analyses of post-acquisition performance: Indications of unidentified moderators. Strategic Management Journal, 25(2), 187–200. CrossRef
- Laabs, J. P., & Schiereck, D. (2010). The long-term success of M&A in the automotive supply industry: Determinants of capital market performance. Journal of Economics and Finance, 34(1), 61–88. CrossRef
- Larsson, R., & Finkelstein, S. (1999). Integrating strategic, organizational and human resource perspectives on mergers and acquisitions: A case survey of synergy realization. Organization Science, 10(1), 1–26. CrossRef
- Long, W. F., & Ravenscraft, D. J. (1993). LBOs, debt and R&D intensity. Strategic Management Journal, 14(1), 119–135. CrossRef
- Lubatkin, M. (1983). Mergers and the performance of the acquiring firm. The Academy of Management Review, 8(2), 218–225.
- Martynova, M., & Renneboog, L. (2008). A century of corporate takeovers: What have we learned and where do we stand? Journal of Banking and Finance, 32, 2148–2177. CrossRef
- McDonald, M. L., Westphal, J. D., & Graebner, M. E. (2008). What do they know? The effects of outside director acquisition experience on firm acquisition performance. Strategic Management Journal, 29(11), 1155–1177. CrossRef
- Meglio, O., & Risberg, A. (2011). The (mis)measurement of M&A performance—A systematic narrative literature review. Scandinavian Journal of Management, 27(4), 418–433. CrossRef
- Seth, A. (1990). Value creation in acquisitions: A re-examination of performance issues. Strategic Management Journal, 11(2), 99–115. CrossRef
- Sharma, D. S., & Ho, J. (2002). The impact of acquisitions on operating performance: Some Australian evidence. Journal of Business Finance and Accounting, 29(1), 155–200. CrossRef
- Singh, H., & Montgomery, C. A. (1987). Corporate acquisition strategies and economic performance. Strategic Management Journal, 8(4), 377–386. CrossRef
- Stahl, G. K., & Voigt, A. (2004). Impact of cultural differences on merger and acquisition performance a critical research review and integrative model. Advances in Mergers and Acquisitions, 4, 51–82.
- Teerikangas, S., & Very, P. (2006). The culture-performance relationship in M&A: From yes/no to how. British Journal of Management, 17(1), S31–S48. CrossRef
- Veugelers, R. (2005). M&A and innovation: A literature review. In B. Cassiman & M. Colombo (Eds.), Mergers and acquisitions: The innovation impact (pp. 37–62). Cheltenham: Edward Elgar.
- Weitzel, U., & McCarthy, K. J. (2011). Theory and evidence on mergers and acquisitions by small and medium Enterprises. International Journal of Entrepreneurship and Innovation Management, 14(2/3), 248–275. CrossRef
- How Swiss small and medium-sized firms assess the performance impact of mergers and acquisitions
Small Business Economics
Volume 42, Issue 2 , pp 339-360
- Cover Date
- Print ISSN
- Online ISSN
- Springer US
- Additional Links
- Mergers and acquisitions
- Economic performance
- Innovation performance
- Industry Sectors