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Article

Heather R. Parola, Kimberly M. Ellis and Peggy Golden

The purpose of this paper is to uncover the performance effects of top management team (TMT) gender diversity in the merger and acquisition (M&A) process. To do so, an…

Abstract

Purpose

The purpose of this paper is to uncover the performance effects of top management team (TMT) gender diversity in the merger and acquisition (M&A) process. To do so, an integration of the upper echelons perspective and the M&A process literature is offered to consider the “double-edge sword” of gender diversity on both pre- and post-integration performance. Additionally, the boundary effects of acquirer experience on the TMT gender diversity-performance relationship is examined.

Design/methodology/approach

The hypotheses are tested in a sample of 310 acquisitions by Fortune 1,000 companies. Multiple regression analysis is utilized to test the effects on the two different performance variables.

Findings

The findings reveal that TMT gender diversity is beneficial to pre-integration performance, but hinders post-integration performance. Additionally, the findings provide evidence that acquirer experience can overcome the negative effects of gender diversity in post-integration performance.

Originality/value

This study contributes to a better understanding of the double-edge sword of TMT gender diversity by providing evidence that performance implications depend on the performance variable of interest. Specifically in the M&A context, gender diversity has differing effects on pre- and post-integration performance.

Details

Management Decision, vol. 53 no. 1
Type: Research Article
ISSN: 0025-1747

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Book part

Janice M. Gordon, Gonzalo Molina Sieiro, Kimberly M. Ellis and Bruce T. Lamont

Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The…

Abstract

Advisors play a key role in the mergers and acquisitions (M&A) process, but research to date has rarely focused on how their influence impacts these transactions. The present chapter takes stock of the present literature on M&A advisors from finance, economics, and management in order to integrate the currently diverging research traditions into a coherent framework. The current research has focused on proximal acquisition outcomes, like acquisition premiums or expected performance in the form of cumulative abnormal returns, but there is limited theoretical understanding of the advisors impact on the post-acquisition period. Moreover, while the role of advisor reputation has been highlighted on both the management and finance literatures as an important aspect of the role advisors play in the M&A process, there seems to be much to be addressed. Furthermore, and perhaps most importantly, the nature of the relationship between the advisor and the acquirer or target presents challenges to researchers where the advisor acts both as a provider of expertise in the M&A process, but may be simply acting on their own best interest. The new framework that the authors present here provides management scholars with a roadmap into a cohesive research agenda that can inform our theoretical understanding of the role of M&A advisors.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78973-599-4

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Book part

Heather Parola and Kimberly M. Ellis

Despite the number of articles over the past two decades mentioning the importance of the negotiation stage in the M&A process, there has been very limited theoretical…

Abstract

Despite the number of articles over the past two decades mentioning the importance of the negotiation stage in the M&A process, there has been very limited theoretical development and empirical analysis emphasizing multiple factors critical to M&A negotiations. The purpose of our paper is twofold. First, we provide a review of the extant academic literature on negotiations in the M&A process. Then, drawing on the M&A process perspective and classical negotiation theory, we develop a framework to highlight major components of the M&A negotiation stage examined in existing studies and offer key insights of how this underdeveloped area of study is ripe with opportunities for future theoretical development and empirical research.

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78190-836-5

Keywords

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Abstract

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-78973-599-4

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Article

Kimberly M. Ellis

This paper analyzes five characteristics associated with the overall decision‐making process that are necessary to achieve a high degree of perceived procedural justice…

Abstract

This paper analyzes five characteristics associated with the overall decision‐making process that are necessary to achieve a high degree of perceived procedural justice within four strategic contexts of focal subsidiaries. Strategic contexts are based on the role of subsidiaries as defined by the flow of knowledge between these subsidiaries and the global network of MNCs. Propositions are developed that relate the five characteristics, the four strategic contexts, and high perceived procedural justice. The propositions represent a template for managers and researchers interested in the successful implementation of global strategic decisions and the improvement of the performance of individual subsidiaries as well as the global competitiveness of multinational corporations.

Details

Competitiveness Review: An International Business Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1059-5422

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Book part

Kimberly M Ellis and Bruce T Lamont

Despite the recent slow down in overall activity, acquisitions continue to be a popular growth strategy used by firms competing in a globally competitive marketplace …

Abstract

Despite the recent slow down in overall activity, acquisitions continue to be a popular growth strategy used by firms competing in a globally competitive marketplace (Duck, Sirower & Dumas, 2002). At the same time, acquisitions are more of a complex phenomenon than ever in that the conditions under which they enhance or destroy firm value still remain unclear despite the wealth of acquisition studies in finance and management. In fact, recent studies by several major consulting and advisory services firms provide evidence that at a minimum one-third to one-half of these deals fail to achieve anticipated benefits, cost savings and other outcomes (KPMG, 1999; Mergerstat, 2000; PricewaterhouseCoopers, 2000). Even more alarming, the latest reports released by Booz Allen and Hamilton (2001) and BusinessWeek (Henry, 2002) indicate that this “failure” to deliver announced benefits and improvements in shareholder wealth increases to over 60% when examining large M&As which typically bring together two firms that not only compete in similar product or market domains but also have comparable size positions. Thus, the question lingers…What distinguishes those acquisitions that are successful in meeting intended goals and performance improvements from those that are not successful?

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-264-1

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Book part

Kimberly M. Ellis and Phyllis Y. Keys

To explain for doctoral students and new faculty, the appropriate techniques for using event study methods while identifying problems that make the method difficult for…

Abstract

Purpose

To explain for doctoral students and new faculty, the appropriate techniques for using event study methods while identifying problems that make the method difficult for use in the context of African markets.

Methodology/approach

We review the finance and strategy literature on event studies, provide an illustrative example of the technique, summarize the prior use of the method in research using African samples, and indicate remedies for problems encountered when using the technique in African markets.

Findings

We find limited use of the technique in African markets due to limited data availability which is attributable to problems of infrequent trading, thin markets, and inadequate access to free data.

Research limitations

Our review of the literature on event studies using African data is limited to English-language journals and sources accessible through our library research databases.

Practical implications

More often, researchers will need to use nonparametric techniques to evaluate market responses for companies in or events affecting the African markets.

Originality/value of the chapter

We make a contribution with this chapter by giving a more detailed description of event study methods and by identifying solutions to problems in using the technique in African markets.

Details

Advancing Research Methodology in the African Context: Techniques, Methods, and Designs
Type: Book
ISBN: 978-1-78441-489-4

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Abstract

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-264-1

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Article

Shaker A. Zahra

As the new mellinum approaches, discussions of the nature and emerging rules of global competitiveness assume greater importance. These discussions are gaining more…

Abstract

As the new mellinum approaches, discussions of the nature and emerging rules of global competitiveness assume greater importance. These discussions are gaining more political currency because competitiveness, however measured, centers on human development, growth and improved quality of life. For a society, improved competitiveness translates into new jobs and better living conditions. For a company, competitiveness means the creation of new growth options that create value for shareholders. Wealth creation is the engine of economic growth and a mainspring of innovation.

Details

Competitiveness Review: An International Business Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1059-5422

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Book part

Abstract

Details

Advances in Mergers and Acquisitions
Type: Book
ISBN: 978-1-84950-264-1

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