Management as the sine qua non for M&A success

Manthos Delis (), Maria Iosifidi, Pantelis Kazakis, Steven Ongena and Mike Tsionas
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Maria Iosifidi: University of Surrey - Surrey Business School

No 20-102, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: This paper studies whether management quality in acquiring firms determines merger and acquisition (M&A) success. We model management practices as an unobserved (latent) variable in a standard microeconomic model of the firm and derive firm-year management estimates. We show that our measure is among the most important determinants of value creation in M&A deals. Our results are robust to the inclusion of acquirer fixed effects, to a large set of control variables, and to several other sensitivity tests. We also show that management explains, albeit to a lesser extent, acquirers’ return on equity and Tobin’s q.

Keywords: Mergers and acquisitions; Management practices; Acquirer returns (search for similar items in EconPapers)
JEL-codes: G14 G34 J24 (search for similar items in EconPapers)
Pages: 99 pages
Date: 2020-12
New Economics Papers: this item is included in nep-cfn, nep-com and nep-lma
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3743980 (application/pdf)

Related works:
Working Paper: Management as the sine qua non for M&A success (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp20102

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