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Management practices and M&A success

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Management practices and M&A success. / Delis, Manthos D.; Iosifidi, Maria; Kazakis, Pantelis et al.
In: Journal of Banking and Finance, Vol. 134, 106355, 31.01.2022.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Delis, MD, Iosifidi, M, Kazakis, P, Ongena, S & Tsionas, MG 2022, 'Management practices and M&A success', Journal of Banking and Finance, vol. 134, 106355. https://doi.org/10.1016/j.jbankfin.2021.106355

APA

Delis, M. D., Iosifidi, M., Kazakis, P., Ongena, S., & Tsionas, M. G. (2022). Management practices and M&A success. Journal of Banking and Finance, 134, Article 106355. https://doi.org/10.1016/j.jbankfin.2021.106355

Vancouver

Delis MD, Iosifidi M, Kazakis P, Ongena S, Tsionas MG. Management practices and M&A success. Journal of Banking and Finance. 2022 Jan 31;134:106355. Epub 2021 Nov 8. doi: 10.1016/j.jbankfin.2021.106355

Author

Delis, Manthos D. ; Iosifidi, Maria ; Kazakis, Pantelis et al. / Management practices and M&A success. In: Journal of Banking and Finance. 2022 ; Vol. 134.

Bibtex

@article{9c5440da1ea041f4b852fc0a105d229c,
title = "Management practices and M&A success",
abstract = "We study whether management practices determine merger and acquisition (M&A) success. We model management as an unobserved (latent) variable in a standard microeconomic model of the firm and derive firm-year management estimates. We validate these estimates against benchmark survey data on management practices and by using Monte Carlo simulation. We show that our measure is among the most important determinants of value creation in M&A deals, substantially increasing the predictive power of models that explain cumulative abnormal returns. Thus, we offer a measure of management practices that identifies the best-performing M&As. Our results are robust to the inclusion of acquirer fixed effects and many control variables, and to several other sensitivity tests. We identify the Q-theory as the key mechanism driving our results.",
keywords = "Mergers and acquisitions, Management practices, Acquirer returns",
author = "Delis, {Manthos D.} and Maria Iosifidi and Pantelis Kazakis and Steven Ongena and Tsionas, {Mike G.}",
year = "2022",
month = jan,
day = "31",
doi = "10.1016/j.jbankfin.2021.106355",
language = "English",
volume = "134",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Management practices and M&A success

AU - Delis, Manthos D.

AU - Iosifidi, Maria

AU - Kazakis, Pantelis

AU - Ongena, Steven

AU - Tsionas, Mike G.

PY - 2022/1/31

Y1 - 2022/1/31

N2 - We study whether management practices determine merger and acquisition (M&A) success. We model management as an unobserved (latent) variable in a standard microeconomic model of the firm and derive firm-year management estimates. We validate these estimates against benchmark survey data on management practices and by using Monte Carlo simulation. We show that our measure is among the most important determinants of value creation in M&A deals, substantially increasing the predictive power of models that explain cumulative abnormal returns. Thus, we offer a measure of management practices that identifies the best-performing M&As. Our results are robust to the inclusion of acquirer fixed effects and many control variables, and to several other sensitivity tests. We identify the Q-theory as the key mechanism driving our results.

AB - We study whether management practices determine merger and acquisition (M&A) success. We model management as an unobserved (latent) variable in a standard microeconomic model of the firm and derive firm-year management estimates. We validate these estimates against benchmark survey data on management practices and by using Monte Carlo simulation. We show that our measure is among the most important determinants of value creation in M&A deals, substantially increasing the predictive power of models that explain cumulative abnormal returns. Thus, we offer a measure of management practices that identifies the best-performing M&As. Our results are robust to the inclusion of acquirer fixed effects and many control variables, and to several other sensitivity tests. We identify the Q-theory as the key mechanism driving our results.

KW - Mergers and acquisitions

KW - Management practices

KW - Acquirer returns

U2 - 10.1016/j.jbankfin.2021.106355

DO - 10.1016/j.jbankfin.2021.106355

M3 - Journal article

VL - 134

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

SN - 0378-4266

M1 - 106355

ER -