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Article
Publication date: 1 August 2016

Reza Yaghoubi, Mona Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which…

Abstract

Purpose

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete.

Design/methodology/approach

This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories, as well as previous empirical studies, on determinants of announcement returns and post-acquisition performance of combined firms.

Findings

Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry- and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. Prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics.

Originality/value

This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Details

Studies in Economics and Finance, vol. 33 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 5 April 2013

Nickolas Ollington, Jenny Gibb and Mark Harcourt

The increased popularity in using online social networks by recruiters has received much positive attention, particularly in the popular press. Using social network theory…

Abstract

Purpose

The increased popularity in using online social networks by recruiters has received much positive attention, particularly in the popular press. Using social network theory this paper aims to examine how the structure and governance mechanisms of these networks can assist this process. The authors ask: how do recruiters use online social networks to effectively attract and screen prospective job applicants?

Design/methodology/approach

The semi‐structured interview approach is used to gather data from 25 recruitment specialists.

Findings

The connector role is identified as a specific attraction mechanism recruiters use to create numerous weak ties, where some are so weak they barely constitute ties at all. The authors then identify branding, transparency and data specificity as three mechanisms recruiters use to strengthen these ties when performing the attracting and screening functions.

Originality/value

This is the first paper to analyse online recruitment, using social network theory, and hence it has important implications for both academic and practitioner audiences involved in recruitment.

Details

Personnel Review, vol. 42 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

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Article
Publication date: 13 April 2015

Albert Sune and Jenny Gibb

In this paper the authors explore the managerial processes involved in deep, purposeful organizational change. The authors investigate change towards a goal-directed end…

Abstract

Purpose

In this paper the authors explore the managerial processes involved in deep, purposeful organizational change. The authors investigate change towards a goal-directed end state and the managerial actions involved in reaching it. The purpose of this paper is to identify patterns of organizational change by analysing how variations occurred in a firm’s resources and capabilities at a time of high internal and external uncertainty.

Design/methodology/approach

The authors use a longitudinal in-depth case study on the airline Spanair. The authors analyse the change process this airline engaged in between 2007 and 2012, which was considered the most turbulent period in aviation history. The authors followed the grounded theory approach to induce a strategic capability pattern model from secondary data.

Findings

The authors identify a capability pattern with four dynamic capabilities: adding, transferring, integrating and shedding; and two higher-order capabilities: goal development and change orchestration. The authors show how the higher-order capability processes are performed by two levels of decision makers, where one creates a goal-directed path, and the other performs a central role in orchestrating change.

Originality/value

Using the teleological approach the authors identify how top management orchestrate change arising from the dynamic capability process outcomes in a top-down and bottom-up manner. As such the authors show how the role of management becomes fundamental in adjusting the capabilities required to meet the goals set, particularly in times of heightened internal and external environmental turbulence. The authors also emphasize the importance of providing bottom-up advice to goal directors.

Details

Journal of Organizational Change Management, vol. 28 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

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Article
Publication date: 29 July 2014

Reza Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to illuminate the issue of whether there is a significant difference between long-term abnormal return of acquirers across industries, and which industries…

Abstract

Purpose

This paper aims to illuminate the issue of whether there is a significant difference between long-term abnormal return of acquirers across industries, and which industries achieve better returns.

Design/methodology/approach

This paper investigates whether there is a significant difference between abnormal return of acquirers across industries. The impact of timing of the deal on the acquirer returns is also studied in this paper. In the regression analysis, we control for acquirer’s size along with a number of deal characteristics, such as method of payment, the mode of the acquisition, the diversifying nature of the deal and value of the deal, to examine whether the differences in acquirer returns across industries persist when these factors are taken into account.

Findings

The results of the study propose discrepancy in acquirers’ long-term abnormal returns across industries. While a number of industries, such as petroleum and natural gas, insurance and machinery, experienced significantly positive abnormal performance, others like business services and medical equipment have demonstrated significantly negative long-term returns.

Originality/value

This paper investigates the industry impact on performance of acquirers. The results of this research provide more comprehensive evidence from all of the industries that have been involved in mergers and acquisition deals during the period 1981-2007 so that the returns of different industries can be compared. Most importantly, the evidence rejects the equality of mean abnormal returns across industries at significant levels.

Details

Studies in Economics and Finance, vol. 31 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 7 March 2016

Reza Yaghoubi, Mona Yaghoubi, Stuart Locke and Jenny Gibb

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which…

Abstract

Purpose

This paper aims to review the relevant literature on mergers and acquisitions in an attempt to provide a comprehensive account of what we know about mergers and which parts of the puzzle are still incomplete.

Design/methodology/approach

This literature review consists of three key sections. The first part of this paper summarises the literature on the cyclical nature of mergers referred to in the literature as merger waves. The second section reviews the causes and consequences of takeovers; it first reviews the causes, or drivers, of acquisitions, while focusing on the fact that acquisitions happen in waves and then reviews the consequences of takeovers, with a predominant focus on the impacts of mergers on the economic performance of acquirers. The third part of the review summarises the theories as well as previous empirical studies on determinants of announcement returns and post-acquisition performance of combined firms.

Findings

Merger activity demonstrates a wavy pattern, i.e. mergers are clustered in industries through time. The causes suggested for this fluctuating pattern include industry and economy-level shocks, mis-valuation and managerial herding. Market reaction to announcement of acquisitions is, on average, slightly negative for acquirer stocks and significantly positive for target stocks. The combined abnormal return is positive. These findings have been consistent over several decades of investigation. The prior research also identifies a number of factors that are related to performance of acquisitions. These factors are categorised and reviewed in five different groups: acquirer characteristics, target characteristics, bid characteristics, industry characteristics and macro-environment characteristics.

Originality/value

This review illustrates a number of issues. Prior research is heavily biased towards gains to acquirers and factors that affect these gains. It is also biased towards finding sources of value creation through mergers, despite the fact that several theories suggest that mergers can be value-destroying. In fact, value destruction is often attributed to managers’ self-interest (agency problem) and mistakes (hubris). However, the mechanisms through which mergers destroy value are rarely addressed. Aside from that, the possibility of simultaneous creation and destruction of value in acquisitions is not often considered. Finally, after several decades of investigation, a key question is not completely answered yet: “What are the sources of value in mergers and acquisitions?”

Details

Studies in Economics and Finance, vol. 33 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 12 January 2015

Paresha Sinha, Mingyang (Ana) Wang, Joanna Scott-Kennel and Jenny Gibb

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open…

Abstract

Purpose

This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions.

Design/methodology/approach

Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry.

Findings

In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive.

Originality/value

This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

Details

European Business Review, vol. 27 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Content available
Article
Publication date: 1 February 2016

Abstract

Details

Personnel Review, vol. 45 no. 1
Type: Research Article
ISSN: 0048-3486

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Article
Publication date: 1 June 1985

The librarian and researcher have to be able to uncover specific articles in their areas of interest. This Bibliography is designed to help. Volume IV, like Volume III…

Abstract

The librarian and researcher have to be able to uncover specific articles in their areas of interest. This Bibliography is designed to help. Volume IV, like Volume III, contains features to help the reader to retrieve relevant literature from MCB University Press' considerable output. Each entry within has been indexed according to author(s) and the Fifth Edition of the SCIMP/SCAMP Thesaurus. The latter thus provides a full subject index to facilitate rapid retrieval. Each article or book is assigned its own unique number and this is used in both the subject and author index. This Volume indexes 29 journals indicating the depth, coverage and expansion of MCB's portfolio.

Details

Management Decision, vol. 23 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 25 May 2012

Jiwei Jenny Shi, Yudong Chen, Elena Kate Gifford and Hui Jin

The purpose of this paper is to obtain a shared understanding of entrepreneurship education and to evaluate the effectiveness of employability and enterprise division in…

Abstract

Purpose

The purpose of this paper is to obtain a shared understanding of entrepreneurship education and to evaluate the effectiveness of employability and enterprise division in current fashion courses and amongst the students between a British and a Chinese university (UClan and SCAU).

Design/methodology/approach

It is a three‐stage action‐oriented PMI2 project (Second Prime Minister's Initiative for International Education) in fashion entrepreneurship, which was funded by the British Council. This paper presents the findings of the first stage of the research project. A combination of literature reviews, participant observation, semi‐structured interviews and focus groups were employed to deliver the results at this stage.

Findings

The findings represent similarities and differences between UClan and SCAU related to enterprise entrepreneurship education: identify rationale of evaluating fashion entrepreneurship education; and clarify a shared understanding of entrepreneurship education and the purpose of evaluating the effectiveness.

Research limitations/implications

Due to geographical restrictions and limited resources, smaller‐scale samples were selected to gain a deeper insight into different approaches to fashion enterprise and entrepreneurship education between UClan and SCAU.

Practical implications

This research will be valuable to academics who wish to develop or enhance fashion entrepreneurship education, in particular with regards to forging links between universities in the UK and China.

Social implications

This paper will increase awareness of fashion entrepreneurship amongst students, graduates and academics.

Originality/value

This research contributes to the current knowledge and best practice of fashion entrepreneurship education.

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Article
Publication date: 1 July 2000

David Megginson

The article provides an overview of current issues in mentoring. After drawing on suggestions from participants at a mentoring conference, the article moves on to examine…

Abstract

The article provides an overview of current issues in mentoring. After drawing on suggestions from participants at a mentoring conference, the article moves on to examine some key emerging questions concerning the value of formal mentoring, the role of training and the experience of mentroing in different countries. The article concludes with a consideration of methodology and how we can come to know what people’s experience is of mentoring.

Details

Career Development International, vol. 5 no. 4/5
Type: Research Article
ISSN: 1362-0436

Keywords

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