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Do early acquisitions sink IPO performance?
Analyzing over 3,500 IPOs from 1985–2003, the authors found that firms making acquisitions within their first year as public companies significantly underperformed the market by 27% over five years, compared to a 10% underperformance for non-acquiring peers. Strikingly, early acquirers initially outperformed the market by 13% pre-acquisition but suffered a sharp 7% decline post-announcement, suggesting that premature M&A activity erodes investor value. The study attributes this pattern to managerial hubris, where post-IPO overconfidence drives inflated acquisition premiums and poor integration. Firms delaying acquisitions by 1–2 years avoided negative returns, performing in line with non-acquirers. The effect was exacerbated during the 1999 tech bubble, when 55% of IPO firms pursued early acquisitions.
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| AMP2503 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Briarcliff Manor, NY: Academy of Management 2011 |
|---|---|
| Edisi | Vol. 25, No. 3, August 2011 |
| Subjek | Corporate strategy Market valuation IPO performance managerial hubris investor returns tech bubble |
| ISBN/ISSN | 15589080 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 3 p. |
| Info Detail Spesifik | Academy of Management Perspectives |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |