Journal Article


Does M&A strategy matter? A contingency perspective

Abstract

This paper takes a contingency approach to investigate whether there are market performance variations for different types of M&A. Eight different types of M&A are identified in a typology based upon the conjunction of three contextual dimensions: external environmental, acquiring firm level strategy and CEO motivation.  Drawing upon a sample of 1,926 domestic UK deals we evaluate the typology to determine whether the financial markets distinguish between different types of M&A. Results indicate significant market and risk-adjusted performance differences by M&A type. These confirm that a contingency approach to M&A performance has merit. We suggest that the proposed integrated typology, that recognises the importance of multiple aspects of strategic fit to M&A performance, addresses the paradox that M&A practitioners continue to pursue deals despite widespread acceptance that they result in high failure rates.

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Authors

Angwin, Duncan N.
Urs, Uma
Appadu, Naagues
Thanos, Ioannis C.
Vourloumis, Stavros
Kastanakis, Minas

Oxford Brookes departments

Oxford Brookes Business School

Dates

Year of publication: 2022
Date of RADAR deposit: 2022-09-20


Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License


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