Investors' decisions following acquisition announcements: A configurational analysis of the role of acquirers' resources, capabilities, and strategic fit with the target firm

Ana Colovic, Olivier Lamotte and Jiachen Yang
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Ana Colovic: NEOMA - Neoma Business School
Jiachen Yang: NEOMA - Neoma Business School

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Abstract: This research investigates how different configurations of acquirers' resources, capabilities, and strategic fit with the target firm influence investors' decisions following acquisition announcements. Drawing on signalling theory and the resource-based view, we argue that investors closely scrutinize acquirers' bundles of resources to evaluate holistically the future outcome of the deal. Our fuzzy-set Qualitative Comparative Analysis (fsQCA) confirms that investors' decisions leading to abnormal stock returns following acquisition announcements depend on the configuration of the acquirer's resources, capabilities, and strategic fit with the target. It also reveals different configurations that lead to high or low short-term stock market performance. Based on the findings, we propose five strategic profiles of merger and acquisition (M&A) deals.

Keywords: acquisitions; investors’ decisions; resources; capabilities; strategic fit; qualitative comparative analysis (QCA) (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

Published in European Management Review, 2021, ⟨10.1111/emre.12481⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03338555

DOI: 10.1111/emre.12481

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