Do M&A deals create or destroy value? A meta-analysis

Reinhard Meckl () and Falk Röhrle ()
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Reinhard Meckl: Faculty for Law and Economics, Chair for International Management, University of Bayreuth
Falk Röhrle: Faculty for Law and Economics, Chair for International Management, University of Bayreuth

European Journal of Business and Economics, 2016, vol. 11, issue 2, 890 volume1: 11

Abstract: Empirical research on the effect of M&A transactions on companies’ performance has not shown clear results of success. It is often assumed that these transactions destroy rather than create value. This study employs meta-analytical techniques to evaluate the outcomes of M&A transactions empirically. This method allows a large quantity of transactions to be examined. Additional factors influencing the performance of M&A transactions are found using a moderator analysis. In total, 55,399 transactions between 1950 and 2010, extracted from 33 previous M&A studies, have been examined. The results of this study confirm findings from previous empirical studies, stating that M&A transactions predominantly do not have a positive impact on the success of a company. A moderator analysis indicates that the type of M&A and the time frame used for measurement influence the success of M&A transactions.

Keywords: mergers and acquisitionmeta-analysis; performance measurement; success of M&A (search for similar items in EconPapers)
JEL-codes: M10 M16 M20 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:aad:ejbejj:v:11:y:2016:i:2:p:890

DOI: 10.12955/ejbe.v11i2.890

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