Acquiring organizational capital

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Author(s)

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)30-35
Journal / PublicationFinance Research Letters
Volume25
Early online date5 Oct 2017
Publication statusPublished - Jun 2018

Abstract

Organizational capital is the accumulation and use of private information to enhance economic efficiency for a firm. Theory has argued that organizational capital is typically embodied in employees and the organizational structure, and is hard to transfer across organizations. In this paper, we study whether organizational capital is transferable across firms via mergers. The evidence shows that acquirers gain more from acquiring firms with higher organizational capital and acquirers are also willing to pay a higher premium for higher organizational capital targets. The evidence suggests that acquiring higher organizational capital targets creates synergies which are shared between acquirers and targets.

Research Area(s)

  • Abnormal returns, Mergers and acquisitions, Organizational capital, Synergy

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Acquiring organizational capital. / Li, Peixin; Li, Frank Weikai; Wang, Baolian; Zhang, Zilong.

In: Finance Research Letters, Vol. 25, 06.2018, p. 30-35.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review