When the role fits: How firm status differentials affect corporate takeovers

Shen, Rui; Tang, Yipeng; Chen, Guoli

doi:10.1002/smj.2194

Cited by 68 publications

(38 citation statements)

References 103 publications

(157 reference statements)

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“…Relatedly, Zhao (2009) found that in high-tech industries, acquirers had less pressure to close a deal if they did not depend on acquisitions as external sources of innovation. Finally, status theory suggests that when prospective M&A partners have status differences, the deal motivation and expected behaviors are clearer and the likelihood of deal completion is higher (Shen, Tang, & Chen, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda

Welch

Pavićević

Keil

et al. 2019

Journal of Management

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Despite the long-standing research interest in the pre-deal phase of mergers and acquisitions, many important questions remain unanswered. We review and synthesize the extensive but rather fragmented research on this topic area in the fields of management, finance, accounting, and economics. We organize our review according to six themes, that is, deal initiation, target selection, bidding and negotiation, valuation and financing, announcement, and closure, which represent the main categories of activities performed during the pre-deal phase. Our review shows that most of the existing research relies on a rather high-level, simplified, and static conception of the pre-deal phase. On the basis of our review, we put forward a research agenda that calls for a more granular examination of individual activities and decisions, a more comprehensive analysis of the interplay among the different actors involved in the pre-deal phase, a better understanding of the role of the temporal dynamics, and the extension of the theoretical base from variance-based to process-based theorizing.

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Section: Literature Reviewmentioning

confidence: 99%

The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda

Welch

Pavićević

Keil

et al. 2019

Journal of Management

View full text Add to dashboard Cite

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“…Previous studies adopted two methods to measure HR slack: organizational-level human resources minus industry-level average human resources (Mishina et al, 2004), and organizational-level human resources minus predicted-level human resources (Shen, Tang, & Chen, 2014). Because our sample covered all publicly listed firms in each industry, using industry-level information for human resource (the first method) to compute HR slack was more appropriate.…”

Section: Human Resource Slackmentioning

confidence: 99%

Developed market or developing market?: A perspective of institutional theory on multinational enterprises’ diversification and sustainable development with environmental protection

Zhang

et al. 2018

Bus Strat Env

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Integrating previous research, we propose a theoretical model predicting the different effects of global diversification on corporate social performance in environmental protection (EP) by focusing on the institutional difference between developing and developed countries. Moreover, arguing for the moderating effects of firm resources, we also predict and test the effect of firm slack resources on the relationship between the diversification and corporate social performance in EP. By analyzing longitudinal data of 847 multinational enterprises (MNEs), we found empirical evidence that when MNEs diversify mainly into developed countries, they are likely to show more EP. By contrast, when MNEs diversify into developing countries, they are likely to show less EP. Furthermore, we found that a firm's financial slack could weaken the positive effect of diversification into developed countries and enhance the negative effect of diversification into developing countries on EP. However, a firm's human resource slack could only weaken the positive effect of diversification into developed countries on EP. We conclude with a discussion of the implications of the findings.

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“…Shen, Tang, and Chen (2014) propose that, because major decisions such as mergers and acquisitions (M&A), are embedded in a social context, the relative status of acquirer and target firms are likely to influence how investors respond. They find that abnormal returns associated with an acquisition announcement are higher for both the acquirer and target firms when there is a greater differential in acquirer-target status, as measured by the difference in analyst coverage between the two firms.…”

Section: Five Domains Of Analyst Researchmentioning

confidence: 99%

Analyzing Analyst Research: A Review of Past Coverage and Recommendations for Future Research

Bräuer

Wiersema

2017

Journal of Management

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As visible and knowledgeable experts who constantly collect, analyze and disseminate information about the future prospects of publicly listed firms, financial analysts fulfill an important information brokerage and monitoring function for investors. By providing investment advice, financial analysts also influence the demand for a firm's stock and thus its price.Executives pay close attention to financial analysts' earnings forecasts and recommendations, so much so that they are frequently criticized for excessive focus on their forecasts at the expense of the long-term interests of the firm. But while research on analysts in strategic management is steadily growing, we lack a coherent understanding of the extent and nature of analysts' diverse influences on executives' and investors' decision-making, and the context in which analysts operate. This is largely due to the fragmentation of the literature and the absence of prior reviews or meta-analyses of the topic. By organizing, synthesizing and analyzing extant research efforts on analysts in the various domains of strategic management research, we aim to advance our knowledge on the influence of analysts on firms and investors. Further, we hope that our analyses and recommendations help further increase research coverage on this important organizational stakeholder.

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When the role fits: How firm status differentials affect corporate takeovers

Cited by 68 publications

References 103 publications

The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda

The Pre-Deal Phase of Mergers and Acquisitions: A Review and Research Agenda

Developed market or developing market?: A perspective of institutional theory on multinational enterprises’ diversification and sustainable development with environmental protection

Analyzing Analyst Research: A Review of Past Coverage and Recommendations for Future Research

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