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Do M&A deals create or destroy value? A meta-analysis

Author

Listed:
  • Reinhard Meckl

    (Faculty for Law and Economics, Chair for International Management, University of Bayreuth)

  • Falk Röhrle

    (Faculty for Law and Economics, Chair for International Management, University of Bayreuth)

Abstract

Empirical research on the effect of M&A transactions on companies’ performance has not shown clear results of success. It is often assumed that these transactions destroy rather than create value. This study employs meta-analytical techniques to evaluate the outcomes of M&A transactions empirically. This method allows a large quantity of transactions to be examined. Additional factors influencing the performance of M&A transactions are found using a moderator analysis. In total, 55,399 transactions between 1950 and 2010, extracted from 33 previous M&A studies, have been examined. The results of this study confirm findings from previous empirical studies, stating that M&A transactions predominantly do not have a positive impact on the success of a company. A moderator analysis indicates that the type of M&A and the time frame used for measurement influence the success of M&A transactions.

Suggested Citation

  • Reinhard Meckl & Falk Röhrle, 2016. "Do M&A deals create or destroy value? A meta-analysis," European Journal of Business and Economics, Central Bohemia University, vol. 11(2), pages 8901:11-890, June.
    • Handle: RePEc:aad:ejbejj:v:11:y:2016:i:2:p:890
    DOI: 10.12955/ejbe.v11i2.890
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    More about this item

    Keywords

    mergers and acquisitionmeta-analysis; performance measurement; success of M&A;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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