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Exploring the Dynamics between M&A Activities and Industry-Level Performance

Jinho Choi (), Nina Shin () and Hee Soo Lee ()
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Jinho Choi: School of Business, Sejong University, Seoul 05006, Korea
Nina Shin: School of Business, Sejong University, Seoul 05006, Korea
Hee Soo Lee: School of Business, Sejong University, Seoul 05006, Korea

Sustainability, 2020, vol. 12, issue 11, 1-24

Abstract: This study investigates the correlation between mergers and acquisitions (M&As) activities and industry-level performance. While extensive research on M&As has focused on financial performance at the firm-level around the merger announcement, not much focus has been given to the relationship between M&A activities and financial performance at the industry level. Using global data from the S&P (Standard & Poor’s) Capital IQ platform database, this study examines the significance of relationships of 12 industry-level financial values with M&A frequency and transaction value across 11 industry sectors throughout 2009–2018. The results show that M&A activities play a key role in identifying industries with lots of potential and that strategic investment planning can be drawn from both industry and time lag perspectives. This study bridges the gap by exploring the complexity of M&A performance across various firms and industries, and supports forward-looking investment processes by delineating emerging industries with expected positive returns.

Keywords: M& A; industry-level performance; correlation analysis; investment planning (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2020
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