Language as a key factor of long-term value creation in mergers and acquisitions in the telecommunications sector

Julio Navío-Marco, Marta Solórzano-García, Mariano Matilla-García and Alberto Urueña

Telecommunications Policy, 2016, vol. 40, issue 10, 1052-1063

Abstract: This article analysed the long-term value creation or destruction in mergers and acquisitions (M&A) in the telecommunications sector and the role of language in these types of operations. After characterising the telecommunications market and discussing and selecting the most suitable long-term methodology, an econometric analysis of telecommunications M&A from 1995 to 2010 was conducted. The research focused on telephone companies or operators as the leading players in the sector. Based on this econometric analysis, we found clear evidence of value destruction (2000–2010) when the sector is analysed as a whole, and we found evidence of value creation when the companies involved use the same language. Different levels of value creation or value destruction were found, depending on the specific language of the operation. This econometric study is the first study devoted to long-term value creation in telecommunications after the liberalisation of the telecommunications market and the first study to quantitatively analyse the role of language in telecommunications M&A.

Keywords: Mergers and acquisitions; Long-term; Language; Value creation; Telecommunications; Abnormal returns (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0308596116300714
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:40:y:2016:i:10:p:1052-1063

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/bibliographic
http://www.elsevier. ... /30471/bibliographic

DOI: 10.1016/j.telpol.2016.07.003

Access Statistics for this article

Telecommunications Policy is currently edited by Erik Bohlin

More articles in Telecommunications Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().