The Role of Business Ethics in Merger and Acquisition Success: An Empirical Study

Carol Lin (yehyunln@nccu.edu.tw) and Yu-Chen Wei (ycwei@nccu.edu.tw)

Journal of Business Ethics, 2006, vol. 69, issue 1, 95-109

Abstract: The purpose of this paper is to explore job performance, mergers and acquisitions (M&A) from an ethical perceptive. A great number of studies have extensively discussed the link between M&A and performance; however, most focused on the financial functions and strategy selections. Although ethical issues emerge in the M&A process, it is a less studied area. This study adopted the structural equation modeling approach to empirically test our hypotheses. Based on 264 samples from financial companies, data analyses indicated that ethical conduct in M&A is significantly correlated with employee job performance. Ensuring employment security and caring practices can significantly explain organizational commitment. Organizational commitment also plays a significant mediating role between a company’s ethical conduct and employee job performance. Managerial implications are also provided. Copyright Springer 2006

Keywords: mergers and acquisitions; business ethics; organizational commitment; job performance (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:69:y:2006:i:1:p:95-109

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DOI: 10.1007/s10551-006-9070-0

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