The Risk Implications of Mergers and Acquisitions with Information Technology Firms

• 成果类型: Article
• 署名作者: Chang, Young Bong; Cho, Wooje
• 署名单位: Sungkyunkwan University (SKKU); University of Seoul
• 刊物名称: JOURNAL OF MANAGEMENT INFORMATION SYSTEMS
• ISSN/ISSBN: 0742-1222
• DOI: 10.1080/07421222.2017.1297641
• 发表日期: 2017
• 页码: 232-267
• 关键词: economic-policy uncertainty; resource-based analysis; long-run performance; econometric-models; RETURN VOLATILITY; VALUE CREATION; network externalities; empirical-analysis; software industry; rival firms

摘要

We address the dynamics of post-merger risks for a firm acquiring an information technology (IT) company over a long-termhorizon, and examine the impact of mergers and acquisitions (M&A) motives on its post-merger risks after controlling for its self-selection into the specific motives the acquiring firm seeks. We find that a strong run-up in risk occurs before M&A transactions are initiated, but this risk begins to decline over the post-merger period. However, post-merger risks tend to persist for firms seeking M&A transactions with a customer-side motive, whereas this does not occur with a production-side motive. While greater post-merger risks are associated with M&As with a customer-side motive, our results suggest that its association with post-merger risks is moderated by industry dynamism. Overall, our study sheds new light on the post-merger risk by addressing its dynamic nature and uncovering the potential interplay between M&A motives and industry dynamism when IT firms are acquired.