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Value creation through external growth strategy: the architecture of successful performance

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  • Veronika Vinogradova

    (Freie Universität Berlin)

Abstract

This paper is concerned with profitable external growth and proposes an empirical model outlining the major determinants of its success. The results of analysis of the unique sample of strategic growth acquisitions completed from 2000 to 2010 suggest that the success of transaction is determined not only by external factors but also by the pre-event fundamental performance of participating companies. Taken together they present the performance measures for a profitable sustainable growth and encourage executives to “lead for value”.

Suggested Citation

  • Veronika Vinogradova, 2018. "Value creation through external growth strategy: the architecture of successful performance," Review of Quantitative Finance and Accounting, Springer, vol. 51(3), pages 847-882, October.
    • Handle: RePEc:kap:rqfnac:v:51:y:2018:i:3:d:10.1007_s11156-017-0690-5
    DOI: 10.1007/s11156-017-0690-5
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    More about this item

    Keywords

    Growth strategy; Corporate M&A; Profitable growth; Shareholder value creation; Valuation;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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