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Synergy effect of M&A Heterogeneity and Alliance Homogeneity on stock market

Author

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  • Jaisang Kim

    (Sungkyunkwan University)

Abstract

Since Merger and Acquisition (M&A) and Strategic Alliance have been regarded as essential parts of successful strategies for profitable growth till date, none of previous researches investigated stock market?s response toward the synergy effect of M&A strategy and Strategic Alliance from the perspective of behavioral economics?more precisely?prospect theory. Therefore, by examining the synergy effect of M&A and Strategic Alliance and applying ?prospect theory? to stock price response, the goal of our research is to empirically test unconventional responses of stock market and ?synergetic relation? between M&A and Strategic Alliance. By doing so, this research will prove that two strategies can work together for better performance in the stock market.

Suggested Citation

  • Jaisang Kim, 2015. "Synergy effect of M&A Heterogeneity and Alliance Homogeneity on stock market," Proceedings of International Academic Conferences 2705111, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:2705111
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    References listed on IDEAS

    as
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    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
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    5. Cloodt, Myriam & Hagedoorn, John & Van Kranenburg, Hans, 2006. "Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries," Research Policy, Elsevier, vol. 35(5), pages 642-654, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Synergy effect ; Merger and Acquisition (M&A); Strategic Alliance; portfolio theory; prospect theory; loss aversion.;
    All these keywords.

    JEL classification:

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

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