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When waiting is strategic: Evidence from Colombian M&As 1995–2008

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  • Andonova, Veneta
  • Rodriguez, Yeny
  • Sanchez, Ivan Dario

Abstract

This study looks into the behavior of privately held firms in Colombia that participate in waves of mergers and acquisitions between 1995 and 2008. The study finds evidence in which experienced firms that perform mergers and acquisitions late in waves show stronger performance as measured by their return on assets. The firms that fall prey to the bandwagon effect and perform M&As at the peak of a wave show the weakest performance in munificent industries. The study discusses the rationality behind strategic waiting in environments with lax contract enforcement and limited information about acquisition targets.

Suggested Citation

  • Andonova, Veneta & Rodriguez, Yeny & Sanchez, Ivan Dario, 2013. "When waiting is strategic: Evidence from Colombian M&As 1995–2008," Journal of Business Research, Elsevier, vol. 66(10), pages 1736-1742.
    • Handle: RePEc:eee:jbrese:v:66:y:2013:i:10:p:1736-1742
    DOI: 10.1016/j.jbusres.2013.01.006
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    References listed on IDEAS

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    Cited by:

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    2. Kargas, Antonios & Argyroulis, Vasileios & Varoutas, Dimitrios, 2023. "Mergers and acquisitions in telecommunications market: a simultaneous equations approach to study Structure, Conduct and Performance," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277984, International Telecommunications Society (ITS).
    3. Teerikangas, Satu & Thanos, Ioannis C., 2018. "Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance," European Management Journal, Elsevier, vol. 36(3), pages 366-380.
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    5. Mohammad Fuad & Ashutosh Kumar Sinha, 2018. "Entry-timing, business groups and early-mover advantage within industry merger waves in emerging markets: A study of Indian firms," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 919-942, December.

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