Post-M&A Performance and Failure: Implications of Time until Deal Completion
- Authors
- Thompson, Ephraim Kwashie; Kim, Changki
- Issue Date
- 4월-2020
- Publisher
- MDPI
- Keywords
- M& A performance; M& A failure; time until deal completion; due diligence hypothesis; overdue hypothesis
- Citation
- SUSTAINABILITY, v.12, no.7
- Indexed
- SCIE
SSCI
SCOPUS
- Journal Title
- SUSTAINABILITY
- Volume
- 12
- Number
- 7
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/56895
- DOI
- 10.3390/su12072999
- ISSN
- 2071-1050
- Abstract
- Firm values change substantially between deal announcement and closing, risking renegotiation or termination. For deals that eventually close, does waiting longer to close benefit the acquirer post-M&A? We investigate whether the time that elapses until deal completion is an indicator of post-M&A performance and failure. We find that deals taking an optimum time to implement perform better, supporting the due diligence hypothesis, while taking too long to close is an indication of poor post-M&A performance and subsequent failure, supporting the overdue hypothesis.
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- Appears in
Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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