All Title Author
Keywords Abstract

Study on the Peer Effect of Unrelated M&As Decisions

DOI: 10.4236/me.2017.812096, PP. 1441-1454

Keywords: M&As Decisions, Unrelated M&As, Peer Effect

Full-Text   Cite this paper   Add to My Lib


This paper takes 7464 pieces of M&As events for A-share listed companies in China from 2010 to 2015 as samples and investigates the industry peer effect of unrelated M&As decisions. The research shows that there exists the peer effect when companies make unrelated M&As decisions in the same industry. This paper also makes further examinations and finds that the M&As experience and scale of companies enhance the peer effect. Moreover, companies with more industry competitions have more obvious industry peer effect. This paper enriches the M&As decisions theory and has guiding significance in practice.


[1]  Jensen, M.C. and Murphy, K.J. (1990) Performance Pay and Top-Management Incentives. Journal of Political Economy, 98, 225-264.
[2]  Montgomery, C.A. and Wernerfelt, B. (1988) Diversification, Ricardian Rents, and Tobin’s q. Rand Journal of Economics, 19, 623-632.
[3]  Bettis, R.A. and Hall, W.K. (1982) Diversification Strategy, Accounting Determined Risk, and Accounting Determined Return. Academy of Management Journal, 25, 254-264.
[4]  Li, S.M., Zhao, J.J. and Liu, Y. (2009) Industry Opportunities, Political Connections and Diversified Mergers and Acquisitions. Major Management Research, No. 4, 1-17.
[5]  Winston, G.C. and Zimmerman, D.J. (2003) Peer Effects in Higher Education. Discussion Paper. Academic Achievement, 39, 43.
[6]  Shue, K. (2013) Executive Networks and Firm Policies: Evidence from the Random Assignment of MBA Peers. Social Science Electronic Publishing, 26, 1401-1442.
[7]  Wan, L.Y., Liang, C.J. and Rao, J. (2016) Study on the Industry Peer Effect of M&A Decisions in Listed Companies. Nankai Business Review, 19, 40-50.
[8]  Aggarwal, R.K. and Baxamusa, M.H. (2012) Unrelated Acquisitions. SSRN Electronic Journal, 1, 324-338.
[9]  Morck, R., Shleifer, A. and Vishny, R.W. (1990) Do Managerial Objectives Drive Bad Acquisitions? The Journal of Finance, 45, 31-48.
[10]  Amihud, Y. and Lev, B. (1981) Risk Reduction as a Managerial Motive by Conglomerate Managers. Bell Journal of Economics, 12, 605-617.
[11]  Penrose, E.T. (1959) The Theory of the Growth of the Firm. Southern Economic Journal, 27, 151.
[12]  Villalonga, B. (2004) Diversification Discount or Premium? New Evidence from the Business Information Tracking Series. The Journal of Finance, 59, 479-506.
[13]  Hong, D.L., Liu, L. and Xiong, D.H. (2006) Diversified Acquisitions, Firms’ Long-Term Performance Loss and Motivations. Economy Science, 28, 63-73.
[14]  Li, S.M. and Zhou, X.C. (2007) Empirical Study on Company Characteristics, Industry Characteristics and Types of M&As Strategy. Management World, No. 3, 130-137.
[15]  Fang, J.X. (2008) Government Intervention, Nature of Ownership and Enterprise Merger and Acquisition. Management World, No. 9, 118-123.
[16]  Wang, S. and Wei, C. (2011) Empirical Study on Enterprise Transformation, Resource Endowment and Diversified Mergers and Acquisitions. China Annual Financial Conference.
[17]  Sacerdote, B. (2001) Peer Effects with Random Assignment: Results for Dartmouth Roommates. Quarterly Journal of Economics, 116, 681-704.
[18]  Lazear, E.P. (1999) Educational Production. Social Science Electronic Publishing, 116, 777-803.
[19]  Ellison, G. and Fudenberg, D. (1993) Rules of Thumb for Social Learning. Journal of Political Economy, 101, 612-643.
[20]  Galef, B.G. (1996) The Adaptive Value of Social Learning: A Reply to Laland. Animal Behaviour, 52, 641-644.
[21]  Park, C. (2003) Prior Performance Characteristics of Related and Unrelated Acquirers. Strategic Management Journal, 24, 471-480.


comments powered by Disqus