Perspectives on mergers and acquisitions research

Perspectives on mergers and acquisitions research

There is a large and growing body of research on mergers and acquisitions. Take note that there are macro-level and micro-level impacts resulting from the merging of two or more companies or the acquisition of another organization. Thus, although mergers and acquisitions are concepts that fall within the realm of business management, relevant research perspectives have become varied. In other words, as a whole, mergers and acquisitions research is now a multidisciplinary undertaking.

Key perspectives on mergers and acquisitions research

1. Strategic Management: Remember that mergers and acquisitions are concepts under the general business management discipline. Nonetheless, using a strategic management perspective, relevant studies examine the motivations and drivers of mergers and acquisitions, as well as the implications and consequences on business performance.

2. Capital Markets: Based on a capital markets perspective, mergers and acquisitions research examines how announcements and actual pursuits of a merger or an acquisition affect the stock market performance of involved organizations and how such create shareholder value. The difference on the stock market performances of involved companies, such as an acquiring company and a target company, is also examined.

3. Economics: Mergers and acquisitions can affect not only the involved organizations but also their markets and immediate business environment. From an economics perspective, research on mergers and acquisitions explore how these initiatives positively or negatively affect relevant industries and sectors, markets, or economies at the micro-level and macro-level.

4. Organizational Theory: There are two specific areas of interest under a mergers and acquisitions research that is based on an organizational theory perspective. The first involves the process by which two previously different and autonomous organizations are unified into a cohesive whole. The second involves determining and examining the effects and changes a merger or acquisition has on organizational structure.

5. Human Resource: From a human resource perspective, research on mergers and acquisitions focuses on the relational and communication issues, psychological and psychosocial concerns, and leadership impacts of a merger or acquisition. In other words, this perspective explores and understands the “human side” of mergers and acquisitions.

A note on mergers and acquisitions research

It is important to highlight the fact that mergers and acquisitions research is not an undertaking limited within the confines of the academe. Business leaders including executives, strategic planners, and consultants pursue research to evaluate the implications a planned merger or acquisition has on their respective organizations. External stakeholders such as investors, analysts, and concerned parties also pursue research to determine how these corporate level strategies might affect their interests.

Nonetheless, the aforementioned perspectives on mergers and acquisitions research give researchers a starting point for determining their research direction, specifically the problem statement, purpose of the particular study, and the theoretical and/or conceptual framework.