Management as the sine qua non for M&A success

Manthos Delis (), Maria Iosifidi and Pantelis Kazakis

MPRA Paper from University Library of Munich, Germany

Abstract: Measuring management practices robustly is difficult, which leaves an important element missing in identifying M&A success. This paper studies management practices as an unobserved (latent) variable using a standard microeconomic model. We show that our measure is the most important determinant of value creation in M&A deals: a one-standard-deviation increase in the measure almost doubles cumulative abnormal returns. 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 posit that any future study of M&A success should include a management component.

Keywords: Mergers and acquisitions; Management practices or skill; Acquirer returns (search for similar items in EconPapers)
JEL-codes: G32 M11 (search for similar items in EconPapers)
Date: 2017-09-11
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Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/81283/1/MPRA_paper_81283.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/88325/1/MPRA_paper_88325.pdf revised version (application/pdf)

Related works:
Working Paper: Management as the sine qua non for M&A success (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:81283

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