Management Practices and Mergers and Acquisitions

Management Science, Forthcoming

65 Pages Posted: 6 Jul 2018 Last revised: 27 Nov 2020

See all articles by John (Jianqiu) Bai

John (Jianqiu) Bai

Northeastern University - D'Amore-McKim School of Business

Wang Jin

Massachusetts Institute of Technology (MIT)

Matthew Serfling

University of Tennessee

Date Written: November 25, 2020

Abstract

Using a novel dataset of establishment-level management practices from the U.S. Census Bureau, we show that firms with more specific, formal, frequent, or explicit (i.e., “structured”) management practices tend to acquire establishments with less structured management practices, and following the acquisition, adopt more structured practices at the target establishments. These changes are larger when acquirers have a greater incentive and ability to make changes and are also associated with improvements in establishment performance. Overall, our findings suggest that the adoption of more structured management practices constitute an important source of value creation in mergers and acquisitions.

Keywords: Mergers and Acquisitions, Management Practices, Synergies, Value Creation

Suggested Citation

Bai, John (Jianqiu) and Jin, Wang and Serfling, Matthew, Management Practices and Mergers and Acquisitions (November 25, 2020). Management Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3208988 or http://dx.doi.org/10.2139/ssrn.3208988

John (Jianqiu) Bai

Northeastern University - D'Amore-McKim School of Business ( email )

220 B RP
Boston, MA 02115
United States

Wang Jin

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Matthew Serfling (Contact Author)

University of Tennessee ( email )

Haslam College of Business
Knoxville, TN 37996
United States
865-974-1952 (Phone)

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