Firms’ Managerial Ability as a Driving Force for Engaging in Mergers and Acquisitions
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 1-18 |
| Journal / Publication | Journal of Business and Policy Research |
| Volume | 12 |
| Issue number | 1 |
| Publication status | Published - Jul 2017 |
Link(s)
| DOI | DOI |
|---|---|
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(36a44d15-fdec-48bf-810a-ad7e108baf69).html |
Abstract
This study examines the relationship between acquiring firms’ managerial ability and their decisions on mergers and acquisitions (M&As). Using M&A data for a sample of US firms from 2000 to 2012, the authors hypothesize and find that when the acquiring firm’s managerial ability is greater, the probability of engaging in M&As and the likelihood of committing serial M&As are both higher. The authors also find that firms with high managerial ability are more likely to enter into horizontal same-industry acquisitions. These results show that the acquiring firm’s managerial ability is a major determinant of M&A activities, and that superior managers are more inclined to achieve growth through external acquisitions, particularly horizontal M&As.
Bibliographic Note
Research Unit(s) information for this publication is provided by the author(s) concerned.
Citation Format(s)
Firms’ Managerial Ability as a Driving Force for Engaging in Mergers and Acquisitions. / Cui, Huijie; Leung, Sidney C M.
In: Journal of Business and Policy Research, Vol. 12, No. 1, 07.2017, p. 1-18.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
