IDEAS home Printed from https://ideas.repec.org/a/gam/jbusin/v1y2021i2p8-114d615049.html
   My bibliography  Save this article

Impact of COVID-19 on Mergers, Acquisitions & Corporate Restructurings

Author

Listed:
  • Chokri Kooli

    (College of Commerce and Business, Lusail University, Zone 69, St 100, Building 333, Lusail, Doha 122104, Qatar)

  • Melanie Lock Son

    (University of Ottawa, Ottawa, ON K1N 6N5, Canada)

Abstract

Most economic downturns have stemmed from inefficiencies in the economic system. This research paper aims at investigating the impact of the COVID-19 pandemic—an exogeneous health crisis—on global mergers and acquisition (M&A) activity. By gathering statistical data about global transaction volume, value, and type, the study aims at getting a pulse of how mergers, acquisitions, and other restructuring activities have been utilized to support corporate objectives amidst these unprecedented times. While the full-fledged impact of COVID-19 cannot be fully captured at the moment (early 2021), the study attempts to illustrate how this change to economic stability caused a Schumpeterian creative destruction of industries. As firms prepare for the growth that will follow this downturn, M&A will enable companies to look into a future infused with technology and structurally different business models. This research paper thus captures the deliberate transformation occurring in the deal world to discuss the possible outlook of the M&A deal market in the post-pandemic world.

Suggested Citation

  • Chokri Kooli & Melanie Lock Son, 2021. "Impact of COVID-19 on Mergers, Acquisitions & Corporate Restructurings," Businesses, MDPI, vol. 1(2), pages 1-13, August.
    • Handle: RePEc:gam:jbusin:v:1:y:2021:i:2:p:8-114:d:615049
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-7116/1/2/8/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-7116/1/2/8/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. He, Hongwei & Harris, Lloyd, 2020. "The impact of Covid-19 pandemic on corporate social responsibility and marketing philosophy," Journal of Business Research, Elsevier, vol. 116(C), pages 176-182.
    2. Umar, Zaghum & Aziz, Saqib & Tawil, Dima, 2021. "The impact of COVID-19 induced panic on the return and volatility of precious metals," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    3. Smith, Garrett C. & Coy, Jeffrey M. & Spieler, Andrew C., 2019. "Cross-border transactions, mergers and the inconsistency of international reference points," Journal of Behavioral and Experimental Finance, Elsevier, vol. 22(C), pages 14-21.
    4. Amankwah-Amoah, Joseph & Khan, Zaheer & Wood, Geoffrey, 2021. "COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice," European Management Journal, Elsevier, vol. 39(2), pages 179-184.
    5. Paul André & Walid Ben-Amar & Samir Saadi, 2014. "Family firms and high technology Mergers & Acquisitions," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 129-158, February.
    6. H. Kent Baker & Shantanu Dutta & Samir Saadi & PengCheng Zhu, 2012. "Are Good Performers Bad Acquirers?," Financial Management, Financial Management Association International, vol. 41(1), pages 95-118, March.
    7. Mathieu Gomes, 2019. "Does CSR influence M&A target choices?," Post-Print halshs-02007313, HAL.
    8. Gerritsen, Dirk F. & Weitzel, Utz, 2017. "Security analyst target prices as reference point and takeover completion," Journal of Behavioral and Experimental Finance, Elsevier, vol. 15(C), pages 1-14.
    9. Dutta, Shantanu & Saadi, Samir & Zhu, PengCheng, 2013. "Does payment method matter in cross-border acquisitions?," International Review of Economics & Finance, Elsevier, vol. 25(C), pages 91-107.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. Sylwia Lorenc & Tomasz Leśniak & Arkadiusz Kustra & Maria Sierpińska, 2023. "Evolution of Business Models of Mining and Energy Sector Companies according to Current Market Trends," Energies, MDPI, vol. 16(13), pages 1-21, July.
    3. Giambattista Albora & Matteo Straccamore & Andrea Zaccaria, 2024. "Machine learning-based similarity measure to forecast M&A from patent data," Papers 2404.07179, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Denis Cormier & Daniel Coulombe & Luania Gomez Gutierrez & Bruce J. Mcconomy, 2018. "Firms in Transition: A Review of the Venture Capital, IPO, and M&A Literature," Accounting Perspectives, John Wiley & Sons, vol. 17(1), pages 9-88, March.
    2. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    3. Margarida Rodrigues & Mário Franco & Nuno Sousa & Rui Silva, 2021. "Reviewing COVID-19 Literature on Business Management: What It Portends for Future Research?," Sustainability, MDPI, vol. 13(11), pages 1-21, May.
    4. Vinogradova, V., 2024. "The upside-down world of value capture. Do companies in technology sector follow the principles of profitable growth?," Journal of the New Economic Association, New Economic Association, vol. 62(1), pages 171-195.
    5. Qi, Yue & Liao, Kezhi & Liu, Tongyang & Zhang, Yu, 2022. "Originating multiple-objective portfolio selection by counter-COVID measures and analytically instigating robust optimization by mean-parameterized nondominated paths," Operations Research Perspectives, Elsevier, vol. 9(C).
    6. Moriuchi, Emi & Takahashi, Ikuo, 2022. "The role of perceived value, trust and engagement in the C2C online secondary marketplace," Journal of Business Research, Elsevier, vol. 148(C), pages 76-88.
    7. David Benjamin Billedeau & Jeffrey Wilson & Naima Samuel, 2022. "From Responsibility to Requirement: COVID, Cars, and the Future of Corporate Social Responsibility in Canada," Sustainability, MDPI, vol. 14(11), pages 1-16, May.
    8. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    9. Imen Khanchel & Naima Lassoued & Rym Gargoury, 2023. "CSR and firm value: is CSR valuable during the COVID 19 crisis in the French market?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(2), pages 575-601, June.
    10. Felipe Arenas-Torres & Miguel Bustamante-Ubilla & Roberto Campos-Troncoso, 2021. "The Incidence of Social Responsibility in the Adoption of Business Practices," Sustainability, MDPI, vol. 13(5), pages 1-14, March.
    11. Kewen Wang & Yongqi Yu & Xin Wang & Haidong Zheng, 2024. "Walk your reputation: The impact of corporate social responsibility decoupling on the hospitality and tourism firm value in the time of crisis," Tourism Economics, , vol. 30(6), pages 1580-1599, September.
    12. Khan, Nasir & Mejri, Sami & Hammoudeh, Shawkat, 2024. "How do global commodities react to increasing geopolitical risks? New insights into the Russia-Ukraine and Palestine-Israel conflicts," Energy Economics, Elsevier, vol. 138(C).
    13. Fabiane Tubino Garcia & Carla Schwengber ten Caten & Elaine Aparecida Regiani de Campos & Aline Marian Callegaro & Diego Augusto de Jesus Pacheco, 2022. "Mortality Risk Factors in Micro and Small Businesses: Systematic Literature Review and Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-37, February.
    14. Irina Chiriac, 2021. "Aspects Regarding Mergers and Acquisitions in the Pandemic Context," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 987-992, December.
    15. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    16. Graciela Corral de Zubielqui & Howard Harris, 2024. "Why the COVID-19 Crisis Is an Ethical Issue for Business: Evidence from the Australian JobKeeper Initiative," Journal of Business Ethics, Springer, vol. 190(1), pages 123-136, February.
    17. Vijaya Sunder M & Anupama Prashar, 2023. "State and citizen responsiveness in fighting a pandemic crisis: A systems thinking perspective," Systems Research and Behavioral Science, Wiley Blackwell, vol. 40(1), pages 170-193, January.
    18. Jianan Li & Xiaotong Jin & Taiyang Zhao & Tiannv Ma, 2021. "Conformity Consumer Behavior and External Threats: An Empirical Analysis in China During the COVID-19 Pandemic," SAGE Open, , vol. 11(3), pages 21582440211, July.
    19. Cho, Hyejin & Ahn, He Soung, 2017. "Stock payment and the effects of institutional and cultural differences: A study of shareholder value creation in cross-border M&As," International Business Review, Elsevier, vol. 26(3), pages 461-475.
    20. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jbusin:v:1:y:2021:i:2:p:8-114:d:615049. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.