Abandonment of mergers and acquisitions: a review and research agenda

Abstract

PurposeThe purpose of this study is to provide a broad understanding of the pre-completion stage and subsequent abandonment of mergers and acquisitions (M&As).Design/methodology/approachA total of 117 peer-reviewed, English language articles published in scholarly journals were considered in the review. The approach includes a descriptive evaluation of the literature, coupled with content analysis. The paper uses both positivist and constructivist approaches to qualitative research. The analysis is conducted with the help of R programming and Gephi visualization software. The authors organize the work around the event of outcome/closure of deal proposal.FindingsIt is found that earlier studies sampled on domestic M&As in developed economies (DEs). However, the interest of scholars has increased in cross-border deals and emerging economies (EEs) in the last decade. Various factors interact and facilitate the completion/abandonment of good and bad deals. The authors find that complex non-linear relationships exist, and there is a need for studies with other classification techniques focusing on predictive accuracy.Research limitations/implicationsThe literature review is limited to articles available to the researcher using search terms related to M&A completion/termination. The databases accessed were: ProQuest, Scopus and Web of Science. However, backward snowballing was performed to avoid the omission of relevant articles.Originality/valueThe findings and subsequent discussions familiarize researchers and practitioners with an overview of research undertaken in the field of M&A abandonment. The authors find voids within the literature and suggest future research agendas.

Tata Kelola Perusahaan, Keuangan, Merger dan Akuisisi, dan Efisiensi Modal Manusia Sebagai Variabel Moderasi

“…Thompson & Kim (2020) menyatakan bahwa waktu yang diperlukan agar kesepakatan berhasil ditutup dapat memberikan informasi probabilitas tentang kemungkinan sebelumnya bahwa kesepakatan itu berhasil atau gagal. Tahap antara pengumuman dan penyelesaian kesepakatan melibatkan proses yang kompleks, serta membutuhkan mekanisme untuk mempengaruhi penyelesaian kesepakatan pengambilalihan (Kumar & Sengupta, 2020). Kesepakatan ini bisa menumbuhkan masalah keagenan antara pemilik dan tim manajemen pada perusahaan publik besar (Means, 2017).…”

Exploring governments' role in mergers and acquisitions using IVIF MULTIMOORA-COPRAS technique

“…Tsao (2009) combined the fuzzy set theory and MCDM approach and applied them to the evaluation of due diligence. Another study by Lee et al (2009) modeled the selection of technology acquisition as an MCDM problem and employed the ANP approach to rank the influential factors. Lee, 2013 also employed the Decision making trial and evaluation laboratory (DEMATEL) technique to create an M&A assessment model and further utilized the ANP to compute these assessment criteria' weights.…”

“…Measuring an acquisition's success must be much broader than a simple change in stock price, as stock changes do not entirely reflect synergy effects (Renneboog and Vansteenkiste, 2019). Management and business studies have identified factors such as strategic fit (Cornaggia and Li, 2019;Lee et al, 2018;Olcay et al, 2019), lack of due diligence during the preacquisition stage (Wangerin, 2019;Bi et al, 2020;Kumar and Sengupta, 2020) and challenges during the integration stage (Figueira et al, 2020;Kumar and Sengupta, 2020) as the contributors to M&A synergy creation. Finance and economics literature have identified how managers' characteristics such as chief executive officer's (CEO) traits, compensations, multiple directorships, board composition, political factors, financing sources and CSRrelated policies influence M&A success (Opoku-Mensah et al, 2019;Renneboog and Vansteenkiste, 2019).…”

Guest editorial

“…Kumar and Sengupta (2021) provide a broad understanding of the pre-completion stage and subsequent abandonment of M&As. Through an analysis of 117 peer-reviewed English language articles, their approach includes a descriptive evaluation of the literature, coupled with content analysis.…”

“…In this special issue, we have two papers following in this wide category, applying specific statistic tools, combined with a content-qualitative analysis. Kumar and Sengupta (2021) provide a broad understanding of the pre-completion stage and subsequent abandonment of M&As. Through an analysis of 117 peer-reviewed English language articles, their approach includes a descriptive evaluation of the literature, coupled with content analysis.…”