Language as a key factor of long-term value creation in mergers and acquisitions in the telecommunications sector

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may LANGUAGE AS KEY FACTOR OF LONG-TERM VALUE CREATION IN MERGERS AND ACQUISITIONS IN THE TELECOMMUNICATIONS SECTOR ABSTRACTThis article analyzes long-term value creation or destruction in mergers and acquisitions in the telecommunications sector. After characterizing the market targeted by the analysis (telecommunications) and discussing and selecting the most suitable long-term methodology, we will make an econometric analysis of telecommunications M&A in the period from 1995 to 2010. The research will focus on telephone companies or operators as leading players in the sector. Based on this econometric analysis, we clearly found evidence of value destruction (2000-2010) using different methodologies, and value creation in the M&A using same language in the involved companies. According with the type of operations, some political recommendations can be established. This is the first econometric study devoted to long-term value creation in telecommunications after the liberalization of the telecom market.

Mind your language!: role of language in strategic partnerships and post-merger integration

“…Much of the research remains adopting a reductionist approach using cultural and language distance indices as a means of analysing the impact of language on international management issues such as managing differences at an inter-and intra-unit level. A number of studies have employed databases for studying M&A performance and decisions in a PMI context (Kedia and Reddy, 2016;Navío-Marco et al, 2016). This suggests that there is a need for a more nuanced understanding in segmenting strategic M&A scenarios.…”

Glamorous Acquisitions in Telecommunications after the Market Liberalisation: Success or Failure?

“…On the other hand, the telecommunications sector, one of the most active and dynamic sectors of the economy, experienced profound strategic changes that began at the end of the 20th century and continue now in the 21st century (Eliassen et al, 2013;Girdzijauskas and Štreimikiene, 2009) with an intensive activity in M&A (Krolikowski and Okoeguale, 2018). Despite the increasing interest in this sector, there is an observable shortage of statistical and econometric analyses of a sectoral nature in telecommunications M&A (Navio-Marco et al, 2016), and the researches of the strategic impact of glamour M&A in this sector are nonexistent. Our study tries to fill this gap of research.…”