Mergers and Acquisitions Research in Finance and Accounting: Past, Present, and Future

Cumming, Douglas J.; Jindal, Varun; Kumar, Satish; Pandey, Nitesh

doi:10.2139/ssrn.4322087

Cited by 5 publications

(1 citation statement)

References 156 publications

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“…To overcome the limitations of organic growth, achieve synergies and maintain competitiveness in a globalized economy, many companies turn to mergers and acquisitions (M&A) as a major corporate finance activity to achieve numerous operational and strategic objectives. M&As also have a substantial impact on capital, labour and product for their potential to create and disseminate value on a large scale into worldwide markets [1][2][3]. Globally, and over time, M&As have increased both in volume and value.…”

Section: Introductionmentioning

confidence: 99%

Unlocking the mergers and acquisitions puzzle in the United Arab Emirates: Investigating the impact of corporate leverage on target selection and payment methods

Elmassri,

Elrazaz,

Ahmed

2024

PLoS ONE

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Following a long stream of literature on the drivers of Mergers and Acquisition (M&A) activities, this study examines the effect of corporate leverage on several decisions of M&A deals in the context of the United Arab Emirates (UAE). Using M&A data from the Thomson One database for the period between 2005 and 2022, we find that corporate leverage significantly influences the type of M&A target. This study further adds to the prior literature on the contradictory behaviours of high and low leverage firms by examining whether acquisition decisions differ amongst them in M&A deals in the UAE context. Results indicate that high (low) leverage firms are less (more) likely to acquire private targets and more (less) inclined to acquire a target from a different (same) industry. Furthermore, our results show that the relationship between the method of payment used in M&A deals and corporate leverage is insignificant. We control for endogeneity using Heckman’s two-stage method. In brief, this paper extends the literature with conclusive evidence that considerations of capital structure can significantly anticipate and explain firms’ behaviour toward M&A choices. The implication of findings may include a call to reform some aspects of the Competition Law in the UAE by requiring private firms to enhance their disclosure practices similar to their public counterparts.

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Section: Introductionmentioning

confidence: 99%

Unlocking the mergers and acquisitions puzzle in the United Arab Emirates: Investigating the impact of corporate leverage on target selection and payment methods

Elmassri,

Elrazaz,

Ahmed

2024

PLoS ONE

View full text Add to dashboard Cite

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Chairperson (CEO) facial structure and risky investments: evidence from Chinese acquisitions

Shi

Boateng

et al. 2023

Rev Quant Finan Acc

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Earnouts in mergers and acquisitions: a systematic literature review of a contingent payment mechanism

Dahlen

2024

Manag Rev Q

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Defining the deal value in mergers and acquisitions is inherently complex and often constitutes an inflection point for the parties involved. By paying part of the deal value at a later stage according to predefined goals, earnouts are intended to alleviate information asymmetries and help bridge valuation differences. Despite their wide application in practice, research on earnouts remains fragmented. This study presents the first systematic literature review of earnouts, mapping the scattered research landscape by analyzing 64 papers published between 1970 and 2023. The review categorizes the body of earnout research into three distinct streams: the motives for employing earnouts, their implications, and the nuances of their contractual arrangements. Based on this synthesis, research gaps are identified that present a comprehensive road map for future research. This study enables investors to employ earnouts more successfully and guides scholars to pursue further earnout research based on its holistic overview.

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Mergers and Acquisitions Research in Finance and Accounting: Past, Present, and Future

Cited by 5 publications

References 156 publications

Unlocking the mergers and acquisitions puzzle in the United Arab Emirates: Investigating the impact of corporate leverage on target selection and payment methods

Unlocking the mergers and acquisitions puzzle in the United Arab Emirates: Investigating the impact of corporate leverage on target selection and payment methods

Chairperson (CEO) facial structure and risky investments: evidence from Chinese acquisitions

Earnouts in mergers and acquisitions: a systematic literature review of a contingent payment mechanism

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