Do M&A deals create or destroy value? A meta-analysis.

  • Reinhard Meckl Faculty for Law and Economics, Chair for International Management, University of Bayreuth
  • Falk Röhrle Faculty for Law and Economics, Chair for International Management, University of Bayreuth
Keywords: mergers and acquisition, meta-analysis, performance measurement, success of M&A

Abstract

Empirical research on the effect of M&A transactions on companies’ performance has not shown clear results of success. It is often assumed that these transactions destroy rather than create value. This study employs meta-analytical techniques to evaluate the outcomes of M&A transactions empirically. This method allows a large quantity of transactions to be examined. Additional factors influencing the performance of M&A transactions are found using a moderator analysis. In total, 55,399 transactions between 1950 and 2010, extracted from 33 previous M&A studies, have been examined. The results of this study confirm findings from previous empirical studies, stating that M&A transactions predominantly do not have a positive impact on the success of a company. A moderator analysis indicates that the type of M&A and the time frame used for measurement influence the success of M&A transactions.

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Published
2016-12-19
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