Owners on both sides of the deal: Mergers and acquisitions and overlapping institutional ownership

Research output: Contribution to conferencePaperpeer-review

Abstract

Although management scholars debate the value creating potential of mergers and acquisitions, the practice is so widespread that the U.S. deals announced in the last decade exceed ten trillion dollars. The present study, using a corporate governance lens, examines the impact of heterogeneous interests of owners on mergers and acquisitions outcomes. In particular we look at how overlapping ownership, i.e. when owners have a stake in both the acquiring and the target firms, impacts the M&A gains of the acquirer. The empirical results suggest that when more institutional owners of the acquiring firm simultaneously hold stock in the target company, acquiring firms are more likely to destroy shareholder value through M&A deals; this effect however is constrained by stronger board control.

Original languageEnglish (US)
StatePublished - Dec 1 2008
Event68th Annual Meeting of the Academy of Management, AOM 2008 - Anaheim, CA, United States
Duration: Aug 8 2008Aug 13 2008

Other

Other68th Annual Meeting of the Academy of Management, AOM 2008
CountryUnited States
CityAnaheim, CA
Period8/8/088/13/08

Keywords

  • Corporate governance
  • Institutional ownership
  • Mergers & acquisitions

ASJC Scopus subject areas

  • Management Information Systems
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'Owners on both sides of the deal: Mergers and acquisitions and overlapping institutional ownership'. Together they form a unique fingerprint.

Cite this