Exploring the Dynamics Between M&A Activities and Industry-Level Performance
This study investigates the correlation between mergers and acquisitions (M&As) activities and industry-level performance. While extensive research on M&As has focused on financial performance at the firm-level around the merger announcement, not much focus has been given to the relationship...
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Online Access: | https://www.mdpi.com/2071-1050/12/11/4399 |
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doaj-b9d1a72adcd14c5481c0c85af05d1eb52020-11-25T02:53:44ZengMDPI AGSustainability2071-10502020-05-01124399439910.3390/su12114399Exploring the Dynamics Between M&A Activities and Industry-Level PerformanceJinho Choi0Nina Shin1Hee Soo Lee2School of Business, Sejong University, Seoul 05006, KoreaSchool of Business, Sejong University, Seoul 05006, KoreaSchool of Business, Sejong University, Seoul 05006, KoreaThis study investigates the correlation between mergers and acquisitions (M&As) activities and industry-level performance. While extensive research on M&As has focused on financial performance at the firm-level around the merger announcement, not much focus has been given to the relationship between M&A activities and financial performance at the industry level. Using global data from the S&P (Standard & Poor’s) Capital IQ platform database, this study examines the significance of relationships of 12 industry-level financial values with M&A frequency and transaction value across 11 industry sectors throughout 2009–2018. The results show that M&A activities play a key role in identifying industries with lots of potential and that strategic investment planning can be drawn from both industry and time lag perspectives. This study bridges the gap by exploring the complexity of M&A performance across various firms and industries, and supports forward-looking investment processes by delineating emerging industries with expected positive returns.https://www.mdpi.com/2071-1050/12/11/4399M&ampAindustry-level performancecorrelation analysisinvestment planning |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jinho Choi Nina Shin Hee Soo Lee |
spellingShingle |
Jinho Choi Nina Shin Hee Soo Lee Exploring the Dynamics Between M&A Activities and Industry-Level Performance Sustainability M& amp A industry-level performance correlation analysis investment planning |
author_facet |
Jinho Choi Nina Shin Hee Soo Lee |
author_sort |
Jinho Choi |
title |
Exploring the Dynamics Between M&A Activities and Industry-Level Performance |
title_short |
Exploring the Dynamics Between M&A Activities and Industry-Level Performance |
title_full |
Exploring the Dynamics Between M&A Activities and Industry-Level Performance |
title_fullStr |
Exploring the Dynamics Between M&A Activities and Industry-Level Performance |
title_full_unstemmed |
Exploring the Dynamics Between M&A Activities and Industry-Level Performance |
title_sort |
exploring the dynamics between m&a activities and industry-level performance |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2020-05-01 |
description |
This study investigates the correlation between mergers and acquisitions (M&As) activities and industry-level performance. While extensive research on M&As has focused on financial performance at the firm-level around the merger announcement, not much focus has been given to the relationship between M&A activities and financial performance at the industry level. Using global data from the S&P (Standard & Poor’s) Capital IQ platform database, this study examines the significance of relationships of 12 industry-level financial values with M&A frequency and transaction value across 11 industry sectors throughout 2009–2018. The results show that M&A activities play a key role in identifying industries with lots of potential and that strategic investment planning can be drawn from both industry and time lag perspectives. This study bridges the gap by exploring the complexity of M&A performance across various firms and industries, and supports forward-looking investment processes by delineating emerging industries with expected positive returns. |
topic |
M& amp A industry-level performance correlation analysis investment planning |
url |
https://www.mdpi.com/2071-1050/12/11/4399 |
work_keys_str_mv |
AT jinhochoi exploringthedynamicsbetweenmaactivitiesandindustrylevelperformance AT ninashin exploringthedynamicsbetweenmaactivitiesandindustrylevelperformance AT heesoolee exploringthedynamicsbetweenmaactivitiesandindustrylevelperformance |
_version_ |
1724724764288745472 |