MERGERS AND PROFITABILITY:A MANAGERIAL SUCCESS STORY?

Ingham, Hilary and Kran, Ingvild and Lovestam, Andre (1992) MERGERS AND PROFITABILITY:A MANAGERIAL SUCCESS STORY? Journal of Management Studies, 29 (2). pp. 195-208. ISSN 0022-2380

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Abstract

Since 1983 expenditure on acquisitions in the UK has more than doubled in real terms, despite the fact that the consensus of opinion in the academic literature is that acquisitions are not, on average, performance enhancing for the acquiring firm. Such literature, however, relates mainly to the acquisition of large, public companies. Drawing on survey evidence from 146 of the UK's top 500 companies, this article reports the results from a survey which encompasses all takeovers. The study revealed that is the expected reward of increased profitabililty which is used in ex‐post evaluation. The major finding of the study is, however, that managers firmly perceive that their takeover activity has been performance enhancing for their company. The evidence presented does suggest that the integration of small acquisitions into an existing organizational structure may be achieved without severe problems of loss of control, and the subsequent decline in performance which beset large acquisitions

Item Type:
Journal Article
Journal or Publication Title:
Journal of Management Studies
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/1400/1405
Subjects:
ID Code:
161175
Deposited By:
Deposited On:
19 Oct 2021 09:45
Refereed?:
Yes
Published?:
Published
Last Modified:
19 Nov 2021 12:04