In light of the mixed findings upon whether good performers are good or bad acquirers, this paper explores the relationship between firm-level recent profitability and post-acquisition performance through the competing analysis of the managerial ability and the hubris hypotheses. The paper also builds on the organizational learning literature to examine the moderating effect played by a firm’s previous acquisition experience, as a potential contingency factor that may alter the performance effects of acquisitions. Based on a dataset of 469 acquisitions completed between 2007 and 2013, results provide support to the managerial ability hypothesis, according to which good performing firms exhibit better post-acquisition returns. Results also support the existence of learning benefits from previous acquisition experience, which further enhances the positive effect played by an acquirer’s recent profitability on post-acquisition performance.

Galavotti, I., Firm-level recent profitability and acquisition performance: exploring competing theoretical perspectives, <<EURASIAN BUSINESS REVIEW>>, 2019; 9 (3): 319-345. [doi:10.1007/s40821-018-0111-2] [http://hdl.handle.net/10807/142855]

Firm-level recent profitability and acquisition performance: exploring competing theoretical perspectives

Galavotti, Ilaria
Primo
2019

Abstract

In light of the mixed findings upon whether good performers are good or bad acquirers, this paper explores the relationship between firm-level recent profitability and post-acquisition performance through the competing analysis of the managerial ability and the hubris hypotheses. The paper also builds on the organizational learning literature to examine the moderating effect played by a firm’s previous acquisition experience, as a potential contingency factor that may alter the performance effects of acquisitions. Based on a dataset of 469 acquisitions completed between 2007 and 2013, results provide support to the managerial ability hypothesis, according to which good performing firms exhibit better post-acquisition returns. Results also support the existence of learning benefits from previous acquisition experience, which further enhances the positive effect played by an acquirer’s recent profitability on post-acquisition performance.
2019
Inglese
Galavotti, I., Firm-level recent profitability and acquisition performance: exploring competing theoretical perspectives, <<EURASIAN BUSINESS REVIEW>>, 2019; 9 (3): 319-345. [doi:10.1007/s40821-018-0111-2] [http://hdl.handle.net/10807/142855]
File in questo prodotto:
File Dimensione Formato  
2018_Galavotti_Eurasian.pdf

non disponibili

Tipologia file ?: Versione Editoriale (PDF)
Licenza: Non specificato
Dimensione 1.17 MB
Formato Unknown
1.17 MB Unknown   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/142855
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 7
  • ???jsp.display-item.citation.isi??? 5
social impact