Small firms and the merger mania

Aiginger, Karl; Tichy, Günther

doi:10.1007/bf00388444

Cited by 53 publications

(21 citation statements)

References 46 publications

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“…For You (1995), small firm flexibility emanates from such factors as hands-on management, efficient information flow, quick decision-making and closeness to customers (Nooteboom, 1994). A practice based management structure makes decision making easier with fewer principal agent problems associated with layers of staff (Sadorsky, 2008;Aiginger and Tichy, 1991) and a close bond between the owner and firm is apparent (Cardon et al, 2012). Small firm practices result in flexibility (Zimmerman, 1995;Wilson and Anderson, 2004) and adaptability (Mills and Schumann, 1985).…”

Section: Introductionmentioning

confidence: 99%

The condition of smallness: how what it means to be small deters firms from getting bigger

Anderson

Ullah

2014

Management Decision

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Purpose – The purpose of this paper is to examine and explain why most small firms remain small. A new conceptual framework – the condition of smallness – is proposed. Design/methodology/approach – A critical examination of the literature about the nature of being a small firm is first conducted. Employing an inductive analysis of responses from a survey of 2,521 small business owners about employment regulation, the nature and effects of smallness is examined. Findings – It was found that owners' choice making combines with perceptions about their resources to produce a condition of smallness. The condition of smallness is conceptualised as the circularity perceptions, attitudes and consequent practices that reflect lack of knowledge, time and capability. It is argued that this condition of smallness inhibits growth to create a wicked problem that explains why most small firms don't grow. Research limitations/implications – This work is largely conceptual, albeit the argument is grounded in, and illustrated by, empirical data. The findings may not be generalisable beyond this paper's data sets, but may be generalisable conceptually. Originality/value – The focus of much scholarly work has been on growth firms. Yet the typical small firm is excluded so that the issues of smallness are often overlooked. This paper, therefore contributes to understanding why small firms don't grow.

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Section: Introductionmentioning

confidence: 99%

The condition of smallness: how what it means to be small deters firms from getting bigger

Anderson

Ullah

2014

Management Decision

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“…In spite of some empirical evidence on the superiority of small firms, Aiginger and Tichy (1991) argue that there is no comprehensive theory available to explain the better performance of smaller firms. They derive six hypotheses to demonstrate that there is at least some theoretical justification of the performance superiority of small firms.…”

Section: Firmsmentioning

confidence: 94%

“…Another quite traditional and powerful measure is profitability, which -due to data reasons -is quite often defined as value-added minus wages divided by value-added. Aiginger and Tichy (1991) and Schneider (1991) provide an overview of the latest studies (published in the eighties). 4 The main results of both studies are summarised in Table I, which contains 21 studies:…”

Section: Some Very Brief Remarks On the Literaturementioning

confidence: 99%

The relationship between efficiency and profitability with respect to the size of firms: An empirical investigation for Austria

Schneider

1993

Empirica

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Abstract. In this paper, an attempt is made to investigate the performance of Upper-Austrian firms by size class. Considering the six derived hypotheses, why small firms have a better performance measure, some of the hypothesis with respect to profitability and labour cost efficiency are confirmed. On average, the gross residual quota (profitability measure) of small firms is higher than the one of medium-sized and large firms. However, a similar result could not be found for the productivity development. Considering the influence of the firm size on the productivity measure, there is in three out of four cases no statistically significant influence at all and in one case the opposite result is obtained indicating the larger the firm, the higher is the productivity. In the case of labour cost efficiency, the hypothesis (the smaller the firm the lower the labour cost per employee) is clearly confirmed.

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“…Efficient market hypothesis proposed that share prices completely reproduce the assessment of the available set of information (Aiginger and Tichy, 1991); therefore, it will be observed in the event window. This research empirically examines the effect of U.K. banks acquiring domestic banks and cross-border banks within the E.U.…”

Section: Introductionmentioning

confidence: 99%

Domestic and cross-border returns to bidders in acquisitions into the E.U.

Chaudary

Mirza

2017

Economic Research-Ekonomska Istraživanja

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The article analyses shareholders returns of acquiring banks in the United Kingdom (U.K.) i.e., when U.K. banks acquire domestic banks and when U.K. banks acquire cross-border banks within the European Union (E.U.). The article includes 75% sample of the total population of bank to bank domestic acquisitions within the U.K. and crossborder acquisitions within the E.U. from 2006 until 2013. The article comes to the conclusion, by the means of event study methodology, that the shareholders returns of acquiring banks are negative and statistically insignificant (-2.076%) when they acquire cross-border banks. The results of U.K. banks acquiring domestic banks indicates higher and statistically significant abnormal returns of 1.628% at 5% significance level as compared to cross-border returns gained by U.K. acquiring banks. The research found an overall insignificant abnormal return of -0.448% for shareholders of the acquiring banks for the entire portfolio. It can be concluded that, on average, shareholders of the acquiring banks experience negative abnormal returns and acquisitions do create (short-term) abnormal returns for the acquiring banks' shareholders around the acquisition announcement time.

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Small firms and the merger mania

Cited by 53 publications

References 46 publications

The condition of smallness: how what it means to be small deters firms from getting bigger

The condition of smallness: how what it means to be small deters firms from getting bigger

The relationship between efficiency and profitability with respect to the size of firms: An empirical investigation for Austria

Domestic and cross-border returns to bidders in acquisitions into the E.U.

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