Integrating Relative Standing and Market Discipline : A Complexity Theory Perspective of Post-Merger and Acquisition Executive Departure

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)Not applicablepeer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationAdvances in Mergers and Acquisitions
EditorsSydney Finkelstein, Cary L. Cooper
Place of PublicationBingley, U.K.
PublisherEmerald Group Publishing Ltd.
Pages181-197
Volume11
ISBN (Electronic)9781781904602
ISBN (Print)9781781904596
Publication statusPublished - 2012

Publication series

NameAdvances in Mergers and Acquisitions
Volume11
ISSN (Print)1479-361X

Abstract

Mergers and acquisitions (M&As) typically accelerate target top management team (TMT) executive departures. Market discipline and Relative Standing are two major and competing economic and sociological explanations for this phenomenon which lack a satisfactory theoretical integration. To fill this gap in the literature, we model the M&A market as a complex adaptive system composed of TMTs which rid themselves of executives via self-organized critical processes, generating M&A market-level properties that are emergent, or not easily explained with reference to the individual TMTs. The observation of an emergent power law distribution in target TMT executive retention rates for M&A activities in the United States supports our interpretation.

Research Area(s)

  • Complex adaptive systems, Mergers and acquisitions, Power law distribution, Self-organized criticality, Top management teams

Citation Format(s)

Integrating Relative Standing and Market Discipline : A Complexity Theory Perspective of Post-Merger and Acquisition Executive Departure. / Iriyama, Akie; Park, Jason W.; Supriyadi, Franky; Yang, Haibin.

Advances in Mergers and Acquisitions. ed. / Sydney Finkelstein; Cary L. Cooper. Vol. 11 Bingley, U.K. : Emerald Group Publishing Ltd., 2012. p. 181-197 (Advances in Mergers and Acquisitions; Vol. 11).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)Not applicablepeer-review