When the target may know better: Effects of experience and information asymmetries on value from mergers and acquisitions

• Main Authors: CUYPERS, Ilya R. P., CUYPERS, Youtha, MARTIN, Xavier
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: acquisition target; bargaining; experience advantage; M&A performance; product-market scope; mergers and acquisitions; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5037; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6036/viewcontent/Cuypers_et_al_2017_Strategic_Management_Journal.pdf
• Institution: Singapore Management University

Extending research on the effect of experience on acquisition outcomes, we examine how the differential in previous M&A experience between the target and the acquirer affects the value they, respectively, obtain when the acquirer takes over the target. Drawing on literature about organizational...