Target Firm-Specific Information and Acquisition Efficiency
This study investigates whether firm-specific information about targets improves acquisition efficiency. We define acquisition efficiency as the total surplus generated by an acquisition and measure it as the difference in the value of the merged firm and the sum of the two firms operating separatel...
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| Veröffentlicht in: | Management science 2017-03, Vol.63 (3), p.672-690 |
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| container_title | Management science |
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| creator | Martin, Xiumin Shalev, Ron |
| description | This study investigates whether firm-specific information about targets improves acquisition efficiency. We define acquisition efficiency as the total surplus generated by an acquisition and measure it as the difference in the value of the merged firm and the sum of the two firms operating separately. We find a positive association between target firm-specific information and acquisition efficiency that is driven mainly by diversifying acquisitions. Additional evidence suggests that both the likelihood of the withdrawal of an announced acquisition and the likelihood of a future divestiture of a target decrease with target firm-specific information. Taken together, our findings suggest that the availability of this information improves merger and acquisitions efficiency.
This paper was accepted by Mary Barth, accounting
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| doi_str_mv | 10.1287/mnsc.2015.2371 |
| format | Article |
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This paper was accepted by Mary Barth, accounting
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This paper was accepted by Mary Barth, accounting
.</description><subject>Acquisition</subject><subject>Acquisitions & mergers</subject><subject>Acquisitions and mergers</subject><subject>Budget surplus</subject><subject>common value</subject><subject>Divestiture</subject><subject>efficiency</subject><subject>firm-specific information</subject><subject>Industrial efficiency</subject><subject>Management research</subject><subject>mergers and acquisitions</subject><subject>Methods</subject><subject>private value</subject><issn>0025-1909</issn><issn>1526-5501</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2017</creationdate><recordtype>article</recordtype><sourceid>N95</sourceid><recordid>eNqFkU1rGzEQhkVpIW6aa24FQ6GnrCutVh9LTybkCwI9xDkLrVbayni1jkYLzb-v1g5JDIYgGKHheWc08yJ0TvCClFL86gOYRYkJW5RUkE9oRljJC8Yw-YxmGJesIDWuT9BXgDXGWEjBZ-j3SsfOpvm1j33xsLXGO2_md8ENsdfJD2GuQztfmqfRg9-9r1wmvA3m-Rv64vQG7NnLfYoer69Wl7fF_Z-bu8vlfWEYr1LBCKa6Zry1jrRNo51pBRXCSUmNbahhsjYUc9NqQqjAmhhBJZOlrjilvG3oKfqxr7uNw9NoIan1MMaQW6qSC0nyKJy8UZ3eWOXzBClq03swaskqKfI2xEQVR6jOBhv1ZgjW-Zw-4BdH-Hxa23tzVPDzQJCZZP-lTo8A6hC8eAc2I_hgIQfw3d8Ee_7YR0wcAKJ1aht9r-OzIlhN_qvJfzX5ryb_s-D7XrCGNMRXumKkqjGu3zbhd2bDR_X-A3ZIuAQ</recordid><startdate>20170301</startdate><enddate>20170301</enddate><creator>Martin, Xiumin</creator><creator>Shalev, Ron</creator><general>INFORMS</general><general>Institute for Operations Research and the Management Sciences</general><scope>AAYXX</scope><scope>CITATION</scope><scope>N95</scope><scope>XI7</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20170301</creationdate><title>Target Firm-Specific Information and Acquisition Efficiency</title><author>Martin, Xiumin ; Shalev, Ron</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c564t-5103a956def1dbbafcd7377f883ceb3c589c306cda11370a1c738582a46336db3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2017</creationdate><topic>Acquisition</topic><topic>Acquisitions & mergers</topic><topic>Acquisitions and mergers</topic><topic>Budget surplus</topic><topic>common value</topic><topic>Divestiture</topic><topic>efficiency</topic><topic>firm-specific information</topic><topic>Industrial efficiency</topic><topic>Management research</topic><topic>mergers and acquisitions</topic><topic>Methods</topic><topic>private value</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Martin, Xiumin</creatorcontrib><creatorcontrib>Shalev, Ron</creatorcontrib><collection>CrossRef</collection><collection>Gale Business: Insights</collection><collection>Business Insights: Essentials</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Management science</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Martin, Xiumin</au><au>Shalev, Ron</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Target Firm-Specific Information and Acquisition Efficiency</atitle><jtitle>Management science</jtitle><date>2017-03-01</date><risdate>2017</risdate><volume>63</volume><issue>3</issue><spage>672</spage><epage>690</epage><pages>672-690</pages><issn>0025-1909</issn><eissn>1526-5501</eissn><abstract>This study investigates whether firm-specific information about targets improves acquisition efficiency. We define acquisition efficiency as the total surplus generated by an acquisition and measure it as the difference in the value of the merged firm and the sum of the two firms operating separately. We find a positive association between target firm-specific information and acquisition efficiency that is driven mainly by diversifying acquisitions. Additional evidence suggests that both the likelihood of the withdrawal of an announced acquisition and the likelihood of a future divestiture of a target decrease with target firm-specific information. Taken together, our findings suggest that the availability of this information improves merger and acquisitions efficiency.
This paper was accepted by Mary Barth, accounting
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| ispartof | Management science, 2017-03, Vol.63 (3), p.672-690 |
| issn | 0025-1909 1526-5501 |
| language | eng |
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| source | Jstor Complete Legacy; INFORMS PubsOnLine; Business Source Complete |
| subjects | Acquisition Acquisitions & mergers Acquisitions and mergers Budget surplus common value Divestiture efficiency firm-specific information Industrial efficiency Management research mergers and acquisitions Methods private value |
| title | Target Firm-Specific Information and Acquisition Efficiency |
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