Strategic momentum: the effects of repetitive, positional, and contextual momentum on merger activity

Article Abstract:

Strategic momentum in merger activities is defined as the tendency of current strategic actions of companies to be the same as these firms' previous strategic operations or to be the expanded versions of past strategies. Strategic momentum is classified into three: repetitive momentum, positional momentum and contextual momentum. Repetitive momentum is said to exist when a company merely duplicates past strategic approaches. There is positional momentum when a firm adopts strategic actions that support or augment its present strategies. Contextual momentum occurs when strategic actions are consistently being influenced by general organization traits, such as corporate culture or structure. Data 262 companies obtained over a 29-year period was studied to test the prediction that these three types may be found in merger activities. Results of the study are discussed.

---

Determinants of tender offer post-acquisition financial performance

Article Abstract:

The relationship between long-term financial performance of acquiring firms and their strategic acquisition factors is discussed. The sample consisted of 42 manufacturing firms that participated in tender offer acquisitions. The financial performance measures include accounting data for the four year periods preceding and following acquisitions. The acquisition factors include: previous acquisition experience; industry commodity; and relative size. Results indicate that post-acquisition financial performance improved for firms that were older, acquired a higher percentage of the target, or had previous experience. Post-acquisition performance declined when target companies contested an acquisition.

---

Strategic business fits and corporate acquisition: empirical evidence

Article Abstract:

A sample of corporate mergers is classified by changes in the product market opportunities of the bidder firms. Data are drawn from 218 randomly selected bids between 1962 and 1983. The results of a multivariate regression analysis indicate that acquisitions that give the bidder access to new but related markets create the most value in mergers.

Similar abstracts:

• Abstracts: Strategic renewal and the interaction of cumulative stress and inertia. Using simulated mergers to evaluate corporate diversification strategies
• Abstracts: The effect of sequential information arrival on asset prices: an experimental study. On the feasibility of automated market making by a programmed specialist
• Abstracts: The effect of taxes and depreciation on corporate investment and financial leverage. Tax arbitrage and the existence of equilibrium prices for financial assets
• Abstracts: A strategy for the future. Segmental reporting: a missed opportunity?
• Abstracts: Taxation enters the age of equality. Business expansion scheme and assured tenancies. A radical, reforming budget

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.