Michelle Rogan and Olav Sorenson<\/strong><\/p>\n

Numerous studies have found that mergers and acquisitions destroy value. What might account for these poor decisions? Using comprehensive data from the advertising industry, we found that the probability of being acquired rose but that the performance of merged entities declined \u2013 both losing clients and selling less to the clients retained \u2013 with the number of common clients (indirect ties) connecting the target to the acquirer. Two potential mechanisms could account for this pattern of results. Either managers hold (positively) biased beliefs about those connected to them through common clients, or they restrict their searches for potential acquisition partners to those they already know, despite the disadvantages of doing so.<\/p>\n

Administrative Science Quarterly<\/em><\/strong>, 59 (2014): 301-329<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Michelle Rogan and Olav Sorenson Numerous studies have found that mergers and acquisitions destroy value. What might account for these poor decisions? Using comprehensive data from the advertising industry, we found that the probability of being acquired rose but that the performance of merged entities declined \u2013 both losing clients and selling less to the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[66],"tags":[67,54,68,29],"_links":{"self":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/298"}],"collection":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=298"}],"version-history":[{"count":4,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/298\/revisions"}],"predecessor-version":[{"id":308,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=\/wp\/v2\/posts\/298\/revisions\/308"}],"wp:attachment":[{"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.olavsorenson.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}