• Journal of Korea Society of Digital Industry and Information Management
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• v.17 no.3
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• pp.105-119
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• 2021

The purpose of this study is to examine the organizational politics, resistance change, turnover intention, and organizational commitment of organizational members during mergers and acquisitions. Recently, many companies are interested in mergers and acquisitions for business diversification and market extension. A merger is a legal consolidation of two entities into one, whereas an acquisition occurs when one entity takes ownership of another entity's stock, equity interests, or assets. This research model establishes a structural equation model. This model is set in a causal relationship between manager's organizational politics, peer organizational politics, and change resistance and the change resistance has a causal relationship of turnover and tissue immersion. In particular, this study will test different of organizational politics by position. Research results, the organizational politics of managers and colleagues have shown increasing change resistance. The change resistance has resulted in a reduction of organizational commitment and an increase of turnover intention. Next, the position analysis showed that top management level, middle management level, and working-level officials showed different organizational politics. The working-level officials are influenced by their manager politics and are influenced in organizational commitment and turnover intention by change resistance. The middle manager level is influenced by the organizational politics of bosses and colleagues, and organizational commitment is weakened by change resistance. The CEO level is not affected by organizational politics in the company, but the turnover intention is strengthened and the organizational commitment is weakened by the change resistance. This study has contributed to further updating the theory of organizational politics based on mergers and acquisitions. As a practical implication, we suggest an organizational integration strategy for a new organization.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.1-20
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• 2020

Purpose - This paper shows an unexplored area related to involuntary delisting. Specifically, this research investigates the effect of target firm information asymmetry on the likelihood that the acquirer or newly merged firm will be forcibly delisted post-merger. Design/methodology/approach - The research uses a sample gathered on local US mergers and acquisitions from the Thomson Reuters Securities Data Company (SDC) Platinum Mergers and Acquisitions database. It applies the logistic regression with industry and year effects and corrects the error term using clustering at the industry level. The research also matches the forced delisted firms to control firms based on industry, acquisition completion year, and firm size and then employs a matched sample analysis. Findings - Findings show that M&As between firms where the target firm is opaque and burdened with high information asymmetry issues are likely to be paid for using majority stock and that M&As involving such opaque targets also have a higher likelihood of getting delisted post-merger. Research implications or Originality - Our results are relevant given the very nature of M&As which involve two players: the acquirer and target who both may have different incentives. Acquirers especially have the tendency to suffer losses and even get delisted if they over-pay for or get merged to a poor target which conceals its poor performance evidenced by higher accruals quality.

• The Korean Journal of Financial Management
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• v.21 no.2
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• pp.1-25
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• 2004

From the perspective of corporate governance, we examine the acquirers' performance of mergers and acquisitions. The empirical results of our study show that outside active shareholders, such as block shareholders or institutional shareholders, affect acquirers' performance in M&A's : the ownership of outside active shareholders is positively correlated with the performance of acquirers. However, the ownership of insiders, such as that of encumbent manners or major shareholders, does not have any significant effect on the performance of M&A's. We also found that the ownership of foreign investors increased its explanatory power after the financial crisis of Asia. Since the current literature concludes that the improvement of corporate governance would enhance the shareholders' wealth, the results of our study implies that outside active investors, rather than insiders, are playing an important role in the corporate governance.

• Journal of Intelligence and Information Systems
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• v.22 no.4
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• pp.123-138
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• 2016

This study investigates intents of acquisitions in information technology industries. Mergers and acquisitions are a strategic decision at corporate-level and have been an important tool for a firm to grow. Plenty of firms in information technology industries have acquired startups to increase production efficiency, expand customer base, or improve quality over the last decades. For example, Google has made about 200 acquisitions since 2001, Cisco has acquired about 210 firms since 1993, Oracle has made about 125 acquisitions since 1994, and Microsoft has acquired about 200 firms since 1987. Although there have been many existing papers that theoretically study intents or motivations of acquisitions, there are limited papers that empirically investigate them mainly because it is challenging to measure and quantify intents of M&As. This study examines the intent of acquisitions by measuring specific intents for M&A transactions. Using our measures of acquisition intents, we compare the intents by four acquisition types: (1) the acquisition where a hardware firm acquires a hardware firm, (2) the acquisition where a hardware firm acquires a software/IT service firm, (3) the acquisition where a software/IT service firm acquires a hardware firm, and (4) the acquisition where a software /IT service firm acquires a software/IT service firm. We presume that there are difference in reasons why a hardware firm acquires another hardware firm, why a hardware firm acquires a software firm, why a software/IT service firm acquires a hardware firm, and why a software/IT service firm acquires another software/IT service firm. Using data of the M&As in US IT industries, we identified major intents of the M&As. The acquisition intents are identified based on the press release of M&A announcements and measured with four categories. First, an acquirer may have intents of cost saving in operations by sharing common resources between the acquirer and the target. The cost saving can accrue from economies of scope and scale. Second, an acquirer may have intents of product enhancement/development. Knowledge and skills transferred from the target may enable the acquirer to enhance the product quality or to expand product lines. Third, an acquirer may have intents of gain additional customer base to expand the market, to penetrate the market, or to enter a foreign market. Fourth, a firm may acquire a target with intents of expanding customer channels. By complementing existing channel to the customer, the firm can increase its revenue. Our results show that acquirers have had intents of cost saving more in acquisitions between hardware companies than in acquisitions between software companies. Hardware firms are more likely to acquire with intents of product enhancement or development than software firms. Overall, the intent of product enhancement/development is the most frequent intent in all of the four acquisition types, and the intent of customer base expansion is the second. We also analyze our data with the classification of production-side intents and customer-side intents, which is based on activities of the value chain of a firm. Intents of cost saving operations and those of product enhancement/development can be viewed as production-side intents and intents of customer base expansion and those of expanding customer channels can be viewed as customer-side intents. Our analysis shows that the ratio between the number of customer-side intents and that of production-side intents is higher in acquisitions where a software firm is an acquirer than in the acquisitions where a hardware firm is an acquirer. This study can contribute to IS literature. First, this study provides insights in understanding M&As in IT industries by answering for question of why an IT firm intends to another IT firm. Second, this study also provides distribution of acquisition intents for acquisition types.

• Venture DIGEST
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• s.136
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• pp.32-33
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• 2009

오늘날 치열한 경쟁 속의 한정된 시장에서는 대기업이든 중소벤처기업이든 판매단가 인하, 원가절감, 품질개선, 디자인 변경, 연구개발 등 기존의 경영전략만으로는 지속적인 성장이 어려운 상황이다. 이에 Cisco, MS 등 글로벌 선도 기업들은 글로벌 고객과 자원(원료, 고급인력 등)을 신속히 확보하기 위하여 경쟁사와의 제휴는 물론 M&A(Mergers and Acquisitions; 인수합병)전략을 적극적으로 활용하고 있다. 하물며 대기업보다 기업 외부환경이나 기업내부자원(자금, 인적능력 등)측면에서 상대적으로 열위에 있는 중소벤처기업들이 M&A를 통하지 않고 자체사업만으로 지속적으로 성장하기는 어려운 일이라고 생각된다.

• Journal of Information Technology Applications and Management
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• v.19 no.3
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• pp.49-68
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• 2012

M&A (Merger and Acquisitions) is a standard corporate strategy frequently used by companies seeking to secure new growth engines and gain a solid foothold in their markets in order to become more globally competitive. To achieve the original goals of M&A, the two involved parties need to invest significant time and resources in integrating all aspects of the companies. A well-planned post-merger integration of information technology (IT PMI) by the two M&A parties is considered a crucial and difficult process because IT provides a fundamental infrastructure for integration. Considering various internal and external factors, the two parties normally formulate an IT PMI strategy. The many IT PMI strategies can be categorized into four major types: Renewal, Takeover, Standardization, and Synchronization. This study aims to develop a decision making model to help merger company and IT managers select the proper IT PMI strategy. More specifically, we identify key determinants that need to be considered when selecting a proper IT PMI strategy. The relative importance of each determinant is defined by analytic hierarchy process (AHP) analysis. Finally, this study evaluates each IT integration strategy under the identified determinants.

• The Korean Journal of Financial Management
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• v.26 no.2
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• pp.33-61
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• 2009

From the perspective of corporate governance, we examine the acquirers' performance of mergers and acquisitions in KOSDAQ Market. The empirical results of our study show that inside an executive shareholders and outside minor shareholders, affect acquirers' performance in M&A's : the ownership of outside minor shareholders is positively correlated with the performance of acquirers. and, the ownership of insiders, such as that of an executive shareholders, does have significant effect on the performance of M&A's. Since the current literature concludes that the improvement of corporate governance in KOSDAQ Market would enhance the shareholders' wealth, the results of our study implies that outside minor investors, as well as insiders, are playing an important role in the corporate governance.

• East Asian Journal of Business Economics (EAJBE)
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• v.3 no.2
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• pp.26-30
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• 2015

Purpose-This paper aims to do research on success and failure of Chinese enterprises and suggest the implications to the Chinese enterprises by comparing the representative examples of Chinese enterprises' overseas M&A. Research Design, Data, and Methodology-This paper selected by six cases of Chinese enterprises' overseas M&A to do the contrast. Results-Consulting company still plays a very important role in Chinese enterprises' overseas M&A because Chinese enterprises' overseas M&A is being placed in growth stage. And how to grasp the development trend of industry accurate and choose the correct target enterprises is a very important issue for Chinese enterprises which can make Chinese enterprises to avoid blind investment. Conclusion-Chinese Enterprises have to evaluate the target enterprise with the aid of authoritative investment and consulting company, focus on training qualified talents and the integration after the M&A when they Overseas M&A in the future.

• International Area Studies Review
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• v.20 no.4
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• pp.147-161
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• 2016

Based on the samples of the Chinese listed companies, this paper studies the influence of political connection on enterprises M&A. We show that the political networks of the listed corporations in China considerably affect their M&A activities. More and greater M&A appear on the companies with political connection. The government mostly influences the political connections on the enterprises M&A. Moreover, we try to find out how much political connection affect the results of the enterprises M&A. Our study can contribute to a new aspect of the political connection in literature, as well as its fiscal consequences in China.

• The Korean Journal of Financial Management
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• v.25 no.2
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• pp.191-213
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• 2008

This study tests and reconfirms the wealth transfer of mergers and acquisitions(M&As) by examining the changes in and the relationship between shareholder and bondholder wealth after the announcements of M&As for the publicly listed firms in Korea Stock Exchange and KOSDAQ market during $1999{\sim}2006$. The change in shareholder wealth is measured by the Cumulative Abnormal Return(CAR) at the M&A announcements, and the change in bondholder wealth is calculated using the Yield Spread Change(YSC) and the change in acquiring firms' credit ratings. The empirical tests show that the CAR of 344 sample acquiring firms at the announcement is 3.59%, which confirms results of the prior research on M&As in Korean market. The average YSC for 35 sample acquiring firms between $2001{\sim}2006$ proves to be negative when we use the yield spread of firms with comparable credit ratings as a benchmark, which means that the acquiring firms' bondholders gain with the announcements of M&As. We find the same result using another benchmark-the yield spread of government bonds. The improvement in the acquiring firms' credit ratings one year after the M&As also indicates that the M&As, on average, increase bondholder wealth. Our test results are consistent with those of the existing studies on the effect of bondholder wealth after the M&As in the United States, which shows that the bondholder wealth increases after the M&As. We do not find the evidence that there is a wealth transfer from the acquiring firms' bondholders to the shareholders after the M&A announcements. Rather, this study confirms that the wealth of the acquiring firms' bondholders increases in the M&As in Korea.