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Value Creation and Appropriation following M&A

Author

Listed:
  • Mahabubur Rahman

    (ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business)

  • Mary Lambkin

    (UCD - University College Dublin [Dublin])

  • Dildar Hussain

    (ESC Rennes School of Business - ESC [Rennes] - ESC Rennes School of Business)

Abstract

Mergers and acquisitions (M&A) are typically inspired by a desire for revenue growth and/or cost efficiency leading to an improvement in financial performance. Post-merger performance has received considerable research attention from scholars in finance and accounting, but the marketing dimension has remained largely unexplored. This research focuses on marketing efficiency as a measure of post-merger performance, and this is investigated via an empirical study of 20 M&A deals within the US commercial banking industry. Data Envelopment Analysis (DEA) is used to measure efficiency, employing two input and two output variables. The results demonstrate that M&A transactions do have a positive effect on the marketing efficiency of the combined firms, although the effect size is small.

Suggested Citation

  • Mahabubur Rahman & Mary Lambkin & Dildar Hussain, 2016. "Value Creation and Appropriation following M&A," Post-Print hal-01477751, HAL.
    • Handle: RePEc:hal:journl:hal-01477751
    DOI: 10.1016/j.jbusres.2016.03.070
    Note: View the original document on HAL open archive server: https://rennes-sb.hal.science/hal-01477751
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    References listed on IDEAS

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    Cited by:

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    3. Monastyrenko, Evgenii, 2017. "Eco-efficiency outcomes of mergers and acquisitions in the European electricity industry," Energy Policy, Elsevier, vol. 107(C), pages 258-277.
    4. Rahman, Mahabubur & Faroque, Anisur R. & Sakka, Georgia & Ahmed, Zafar U., 2022. "The impact of negative customer engagement on market-based assets and financial performance," Journal of Business Research, Elsevier, vol. 138(C), pages 422-435.
    5. Sen Wang & Zhijun Zhang, 2018. "Research on China’s M&A Efficiency Based on DEA–Tobit," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(4), pages 232-232, March.

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    More about this item

    Keywords

    Mergers and Acquisitions (M&A); Post-merger Marketing Performance; Data Envelopment Analysis (DEA); Marketing Efficiency;
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