Research Hypotheses - Mergers and Acquisitions

The purpose of this knol is collect hypotheses/theoretical conjectures used by researchers so far in the field of mergers and acquisitions. The idea is to help research scholars to develop an understanding theoretical conjecture development through creative intellectual effort on facts and existing theoretical conjectures. 

 

1. Acquisition decision-making processes: the central role of risk

Journal of Management,  Sept-Oct, 1996  by Amy L. Pablo,  Sim B. Sitkin,  David B. Jemison

http://findarticles.com/p/articles/mi_m4256/is_n5_v22/ai_18920990/pg_1?tag=artBody;col1

 

 

P1a: The effect of strategic fit on the perceived riskiness of an acquisition candidate will be contingent on decision-maker risk propensity. Specifically, the lower the decision-maker's risk propensity, the more increased strategic fit will lead to decreased candidate riskiness. For more risk seeking decision makers, this negative effect will be weaker and potentially even reversed.

P1b: The higher an acquisition candidate's level of organizational fit, the less risky that candidate will be perceived to be.

P1c: The higher a decision maker's risk propensity, the more heavily they will weight strategic fit issues and the less heavily they will weight organizational fit issues.

Original Knol - http://knol.google.com/k/narayana-rao/research-hypotheses-mergers-and/2utb2lsm2k7a/ 425