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Navigating the storm: How the COVID-19 pandemic transformed the M&A landscape

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  • Tian, Haowen
  • Wang, Junkai

Abstract

This study employs a DiD design to investigate the influence of the COVID-19 pandemic on corporate M&A decisions and performance. Findings suggest that the uncertainty caused by the pandemic has heightened the challenges associated with making merger decisions. Companies have adopted a more cautious approach, leading to a reduction in the number of M&A transactions. Additionally, these M&A events have exhibited more significant stock market returns. This research expands upon previous studies examining the economic impacts of the COVID-19 pandemic and the factors influencing corporate M&A. It offers valuable insights for corporate managers, investors, and regulatory authorities.

Suggested Citation

  • Tian, Haowen & Wang, Junkai, 2024. "Navigating the storm: How the COVID-19 pandemic transformed the M&A landscape," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323012060
    DOI: 10.1016/j.frl.2023.104834
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    References listed on IDEAS

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    Cited by:

    1. Bai, Min & Zhang, Yuqi & Yu, Chia-Feng (Jeffrey), 2024. "Do firms gamble for resurrection from COVID-19?," Economics Letters, Elsevier, vol. 241(C).
    2. Chen, Mengmeng & Ye, Guoan, 2025. "Multiple large shareholders, related-party transactions and accounting conservatism," Finance Research Letters, Elsevier, vol. 74(C).
    3. Perafán-Peña, Héctor Fabio & Gill-de-Albornoz Noguer, Belén & Giner, Begoña, 2024. "Targets’ earnings management and ownership decisions in M&A: Can less be more ?," Finance Research Letters, Elsevier, vol. 62(PA).

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