ENTERPRISE SYSTEMS AND M&A OUTCOMES FOR ACQUIRERS AND TARGETS

• 成果类型: Article
• 署名作者: Cao, Chengxin; Ray, Gautam; Subramani, Mani; Gupta, Alok
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: MIS QUARTERLY
• ISSN/ISSBN: 0276-7783
• DOI: 10.25300/MISQ/2022/15594
• 发表日期: 2022
• 页码: 1295-1322
• 关键词: information-technology; INTERORGANIZATIONAL RELATIONSHIPS; ACQUISITION PERFORMANCE; BIDDING FIRMS; market value; mergers; IMPACT; integration; INVESTMENT; implementation

摘要

This study examines the impact of coordination capabilities provided by enterprise systems (ES), manifested in ES standardization and extensiveness, on merger and acquisition (M&A) outcomes in the short and long term. Specifically, we examine the extent to which the ES standardization and ES extensiveness of the acquiring and target firms contribute to value creation in M&A initiatives. We also study the relationship between the ES standardization and ES extensiveness of the acquiring and target firms and M&A offer premiums. The empirical analysis suggests that the ES standardization of acquirers is related to lower offer premiums and a higher market response to the acquisition for the acquirer. However, it is the ES extensiveness of the acquirer that improves long-term performance i.e., decreases goodwill impairment and increases operating performance. The analysis also indicates that the target's ES standardization increases the premium for the target firm and generates a positive market response to the acquisition for the target firm. Overall, the analysis indicates that the ES standardization likely affects the integration cost that influences market response to the M&A and to the M&A premium in the short term, but it is ES extensiveness that affects the realized synergy from the M&A that affects long-term performance.