Affect Acquisition Performance Research Articles

Stakeholder relations as an asset in family firms – Performance effects of changes after PE investment

By building upon instrumental stakeholder theory, we aim to increase academic understanding of how changes in stakeholder relations affect acquisition performance outcomes in a private equity (PE) family firm buyout, during the holding period. With our sample of 134 PE-backed family firm buyouts, we find evidence to suggest that reducing social engagement during the holding period decreases medium-term performance, whereas the termination of existing supplier relationships affects this positively. Moreover, our data suggests that effects concerning the reduction of social engagement and employee downsizing are negatively moderated by increased levels of family ownership prior to the PE deal.

The impact of distance on acquisition performance

A challenge in interpreting research is that the construct of ‘distance’ has multiple dimensions that influence acquisition performance. We expand Ghemawat's (2001) typology of distance with its dimensions of cultural, administrative, geographic, and economic distance (CAGE) from a review of 61 empirical research studies of how distance affects acquisition performance. We identify different impacts of distance dimensions on acquisition performance to find that distance dimensions are interdependent. As a result, context matters, when considering the impact of distance on acquisition performance. Supporting institutional theory, the direction of distance may matter, as the results may be different for acquirers in developed and emerging economies. Additional implications for research and management practice are identified.

Level and speed of acquisition integration and their effects on technological performance

PurposeThis study concerns two aspects of the integration process critical for the success of acquisitions: (1) levels of human integration and task integration and (2) speeds of human integration and task integration. The purpose of this study is to examine the interaction effects of human/task integration level and human integration speed advantage on acquisition performance.Design/methodology/approachThis study collected data of companies in the Taiwanese high-tech industries at the financial, organizational and industrial levels to examine the proposed hypotheses. Corporate financial and patent data were collected from the Taiwan Securities and Futures Commission databases and the Intellectual Property Office (IPO) databases. The organizational level data were collected from 142 publicly traded related acquisitions from 2008 to 2009 in the Taiwanese high-tech industries.FindingsThe results show that (1) a high level of human integration positively affects technological performance; (2) the interaction term of human integration level and human integration speed advantage (i.e., relatively faster human integration coupled with slower task integration) positively affects technological performance; and (3) the interaction term of task integration level and human integration speed advantage positively affects technological performance.Originality/valueThe originality of this study lies in advancing our understanding of how complex interactions between human/task integration level and human integration speed advantage affect acquisition performance.

Does target geographical complexity impact acquisition performance

Using a sample of 738 U.S. M&A deals, we examine whether a target's geographical complexity affects acquisition performance. Our results show that target geographical complexity is associated with (i) lower acquirer abnormal returns, and (ii) higher acquisition premiums. These results imply that acquiring firms overestimate their synergistic gains associated with more geographically diversified targets and acquirer shareholders are less enthusiastic about such deals. Further, we find that despite unfavorable market reactions, acquiring firm managers are not likely to abandon geographically complex target deals. Our main results remain qualitatively similar after addressing plausible endogeneity bias.

Looking into the ‘black box’ – unlocking the effect of integration on acquisition performance

Extending research on the performance of Mergers and Acquisitions (M&As), this paper seeks to explain how the post-acquisition integration phase affects acquisition performance. Despite extensive research efforts, there remains a scant understanding of how acquisition implementation, particularly in the post-acquisition integration phase, impacts the performance of M&As. Based on an extensive study of eight acquisitions, in this paper, a grounded model detailing the mechanisms by which the post-acquisition integration phase affects acquisition performance is developed. The model posits that integration-related factors do not bear directly upon acquisition performance. Instead, their effect is mediated by functional organizations in both firms. When focusing into these functional mediating dynamics, we observe that integration-related processual, behavioral and cultural factors affect the identified functional mediators in different ways. Going forward, we echo calls for integrated perspectives to the study of M&A and M&A performance in particular.

Does a Prior Alliance with the Target Affect Acquisition Performance? The Dangers of a Honeymoon before Marriage

Drawing from organizational learning theory, extant literature argues that a pre‐acquisition alliance between an acquirer and its target is usually expected to have a positive impact on subsequent acquisition performance. Yet, since alliances and acquisitions are partially dissimilar events, negative transfer effects can bias inter‐partner learning and negatively affect acquisition performance. To fill this gap, our paper explores pre‐acquisition alliance duration and examines its effects on acquisition outcomes. We argue that a pre‐acquisition alliance can have either beneficial or detrimental effects on subsequent acquisition performance, depending on the duration of the pre‐acquisition alliance. We examine our hypotheses using a (1988–2008) panel database covering acquisitions by French firms in the US. We show an inverted U‐shaped relationship between the duration of a pre‐acquisition alliance and the probability of acquisition failure. Our results also indicate that this non‐monotonic relationship is partially moderated by the degree of partner commitment to the alliance.

"Networks, Alliances and Acquisitions: Role Of Social Embeddedness In Acquirer Performance."

In this paper I investigate how alliances and multiplex interorganizational networks, into which all firms are embedded, affect acquisition performance of acquirer firms. I propose that resources embedded into these networks, particularly in high-tech settings, as well alliances outside of acquirer-target dyads influence the acquisition performance. In line with my hypotheses, I find empirical evidence that acquirers benefit when they purchase firms that have previously received venture investment from either their close allies, or highly central actors, but not both. My results highlight both the importance and the complexity of social mechanisms at work in this setting.

How mindfulness and acquisition experience affect acquisition performance

Purpose– The purpose of this paper is to provide insights to the impact of acquisition experience from prior acquisitions on the performance of subsequent ones. The authors base the analysis on the concept of mindfulness which has recently gained increasing attention in organizational learning theory. The aim is to extend prior research on mindfulness in organizational learning by empirically addressing how mindfulness in knowledge transfer affects task performance in the context of a rare organizational event, i.e. an acquisition, and how it is moderated by the conditions surrounding that event.Design/methodology/approach– Employing a path-related approach, the authors analyzed large acquisitions of multiple US acquirers in a sequence to be able to clearly identify feedback from preceding acquisitions on subsequent ones. The authors adopt individual acquisition events as the unit of analysis to demonstrate the effect of mindfulness on task performance, and follow the widely used approach of measuring acquisition performance by abnormal stock market returns around the time of an acquisition announcement.Findings– The analysis reveals an alternating relationship between an acquirer's acquisition experience and its acquisition performance. This relationship is positively moderated by an acquirer's cash reserves and by the temporal spacing of its acquisitions, but negatively moderated by an acquirer's market-to-book value.Originality/value– Path-related approaches are rarely used in the mergers & acquisitions literature. The paper is based on the concept of mindfulness and identifies an up to now unrecognized pattern in the performance of multiple acquisitions.

Looking into the 'black box' - Unlocking the effect of integration on acquisition performance

Extending research on the performance of Mergers and Acquisitions (M&As), this paper seeks to explain how the post-acquisition integration phase affects acquisition performance. Despite extensive research efforts, there remains a scant understanding of how acquisition implementation, particularly in the post-acquisition integration phase, impacts the performance of M&As. Based on an extensive study of eight acquisitions, in this paper, a grounded model detailing the mechanisms by which the post-acquisition integration phase affects acquisition performance is developed. The model posits that integration-related factors do not bear directly upon acquisition performance. Instead, their effect is mediated by functional organizations in both firms. When focusing into these functional mediating dynamics, we observe that integration-related processual, behavioural and cultural factors affect the identified functional mediators in different ways. Going forward, we echo calls for integrated perspectives to the study of M&A and M&A performance in particular.

Understanding Cross-form Transfer Effects: Alliance Experience and Acquisition Performance

We study the cross-form transfer effects between the alliance and acquisition governance forms. One particular case of the cross-form (transfer) effect is how previous alliance experiences of acquirers and targets affect acquisition performance. We extend the literature by providing a more integrated and nuanced explanation of the cross-form effect using two theoretical mechanisms. The first is the more familiar process similarities mechanism which explains the cross-form effect as the extent to which alliance processes in the same firm are transferred to acquisitions because of similarities between the processes involved in the two governance forms. We extend the literature by enriching the explanation of the cross-form effect with a second mechanism. The experience interactions mechanism explains the effect as the extent to which alliance processes from different firms have mutual influences on each other in the focal acquisition. By taking inter-firm and intra-firm perspectives, the two mechanisms provide complementary explanations of the overall cross-form effect and together form one integrated cross-form mechanism. Hypotheses derived from the theoretical mechanisms are tested on a sample of 505 US acquisitions between 1988 and 1997 in the manufacturing sector. We find strong empirical support for our main hypotheses on the cross-form mechanisms.

Integration managers' value‐capturing roles and acquisition performance

AbstractAlthough the significance of managing the acquisition process is acknowledged, little evidence exists as to the ways in which managerial action throughout this process impacts acquisition performance. In this article, the researchers draw attention to the central, yet largely neglected figure responsible for implementing mergers and acquisitions (M&A), namely “the integration manager.” Drawing from an extensive study of nine related, friendly acquisitions involving 166 interviews, the authors find that integration managers affect acquisition performance by capturing value derived from (a) the preacquisition phase, (b) the acquiring firm, and (c) the acquired firm. Through their in/;action, integration managers affect two sources of economic performance: the extent of additional value created and the extent of value leaked. The findings contribute to enriching our knowledge of managing the acquisition process and are a call for more actor‐based, micro‐level studies on the ways in which managing the acquisition process and the actors therein affect acquisition performance. © 2011 Wiley Periodicals, Inc

Weighted Acquisition of UWB Signals Based on Energy Detection

Due to the low complexity and cost characteristics of ultra-wideband (UWB) systems, a weighted acquisition algorithm based on energy detection is proposed in this paper. This method is divided into two steps to acquire the direct path (DP) component. Firstly, weighted energy detection is applied to determine which energy block the DP lies in by generalized likelihood ratio test (GLRT). A sub-optimal weighted vector is obtained, by which the closed form of detection performance is proposed. In the second step, the precise position of DP within the detected energy block is obtained by the statistical characteristics of the channel energy distributions. Key parameters that affect acquisition performance are studied by analytical and numerical methods. Simulations and experiments are carried out for performance and complexity comparison with traditional ones. The results show that weighted acquisition achieves better performance under relative low complexity conditions.

Why Some Acquisitions Do Better Than Others: Product Capital as a Driver of Long-Term Stock Returns

Abstract Corporate acquisitions are strategic actions that loom large in the minds of many senior managers. Despite decades of study, little systematic research exists on a central question: Why do the acquisitions of some firms perform better than those of others? The work that has examined this question has mostly focused on deal-specific variables (i.e., how the acquisitions are conducted). In this article, the authors highlight a firm-specific, marketing-driven variable—namely, product capital—that affects acquisition performance and predicts which firms are better positioned to acquire in the first place. The authors also present a mechanism by which product capital affects performance— namely, through acquirers' superior selection and deployment of targets' innovation potential. This article shows that firms with high product capital (i.e., those with greater product development and support assets) make smarter acquisition decisions. Such firms are better at selecting targets with innovation potenti...

Can a Previous Alliance Between an Acquirer and a Target Affect Acquisition Performance?

Throughout the 1990s, organizations have been combining resources through acquisitions and alliances in record numbers. An acquirer’s previous alliance with a target may give an acquirer target-specific information and experience that may be an advantage-producing resource in selection, valuation and integration of the target. This study investigates whether a previous alliance between an acquirer and a target affects post-acquisition performance and finds that a previous alliance between an acquirer and a target correlates positively with acquisition performance. Acquirers’ previous R&D, technology transfer, manufacturing and marketing alliances with targets benefit acquisition performance more than their previous licensing alliances with targets. Furthermore, target-specific learning effects are strongest and most beneficial to acquisition performance in acquirers’ previous technology transfer and manufacturing alliances with targets.

Effect of tacrolimus (FK506) on ischemia-induced brain damage and memory dysfunction in rats

The behavioral and neurohistological protective effects of tacrolimus (FK506) were examined in rats subjected to 15-min global forebrain ischemia. Learning and memory performance were evaluated in an aversive, non-food-motivated, eight-arm radial maze. In one experiment, naive rats were rendered ischemic, and 15 days later they were tested for acquisition of a spatial task (postoperative training). In a complementary experiment, rats were trained for 8 days and then subjected to ischemia (preoperative training); 15 days later (on Day 24 of testing) they were retested for retention of cognition. FK506 (1.0 mg/kg) was given intravenously at the beginning of reperfusion, followed by doses applied intraperitoneally 6, 24, 48 and 72 h postischemia. Behavioral performance was expressed by latency to find the goal box, and number of errors. Ischemia did not affect acquisition performance. In contrast, retention of cognition was markedly impaired by ischemia, particularly working memory ( P<.05–.001). This ischemia-induced, retrograde amnesia was significantly reduced by FK506 compared to vehicle alone on Day 24, as measured by latency and working memory errors ( P<.025). A neuroprotective effect of FK506 was also seen on working memory, when postischemic performance was compared to that prior to ischemia ( P>.05, Day 24 vs. Day 8, paired samples), in contrast to the significant, retrograde amnesia found in the ischemic, vehicle-treated group ( P<.01). FK506 also significantly reduced the extent of hippocampal CA1 cell loss; however, this effect did not correlate with behavior. The present results suggest that the histological, neuroprotective effect of FK506 may be accompanied by a reduction in cognitive impairment, as assessed in a novel, non-food-motivated, eight-arm radial maze after transient, global, cerebral ischemia in rats.

Measuring Emotional Memory in the Elevated T-Maze Using a Training-to-Criterion Procedure

The elevated T-maze, an ethologically based test, has been used to investigate the effects of anxiolytic drugs on memory and the relationships between neural systems involved in such modulation. This test allows the measurement in the same rat of two kinds of aversively motivated behaviors—inhibitory avoidance and one-way escape. The apparatus consists of three arms of equal dimensions, elevated 50 cm from the floor. One arm is enclosed by walls and stands perpendicular to the two open arms. Placing the rat at the end of the enclosed arm and recording the time to withdraw from this arm during three consecutive trials assesses inhibitory avoidance. Soon afterwards, the rat is placed at the end of one of the open arms and the time to leave this arm recorded as escape response. Three days later memory is assessed by reexposing the rats to the maze. One critical question raised by these studies is whether the anterograde amnesia induced by anxiolytic drugs could be due to insufficient learning during training or to amnesia. The present work investigated whether the introduction of a multitrial training-to-criterion procedure could overcome this question. For this purpose, rats were tested as many times as needed to stay in the enclosed arm continuously for 300 s (avoidance learning to criterion). Results from Experiment 1 showed that rats trained to a learning criterion shows significantly better retention performance. Experiment 2 evaluated the effects of pretraining diazepam (DZP) treatment on this training-to-criterion protocol. The results indicate that DZP did not affect acquisition performance but induced a dose-dependent impairment of the inhibitory avoidance in the memory test. One-way escape (latency to enter the enclosed compartment from the open arms) was not affected by DZP. These results rule out the possibility that the impairment of inhibitory avoidance memory in the elevated T-maze could be due to lack of learning during training, and support the hypothesis that the disruptive effects of DZP are on processes involved in long-term storage of information.

Transient response of Colpitts-VCO and its effect on performance of PLL system

In this paper, we investigate the frequency step response of the Colpitts-voltage-controlled oscillator (VCO) by solving its third-order circuit state equation. The result shows that after the capacitance change, its oscillation frequency changes to its steady state value with vibration. We also establish a more accurate transfer function of the Colpitts-VCO by considering its transient response with the assumption that the change of the capacitance is small. Moreover, we also introduce the idea of VCO time constants which represent a degree of the transient response of the VCO. Finally, to evaluate how the transient response of VCO influences on performance of phase-locked loops (PLL's), we investigate acquisition processes of PLL model using our new transfer function. In the high-speed PLL, transient response of the VCO affects acquisition performance. There might be the case where response of the acquisition changes to its steady state with vibration, even in case where there is only overshoot in conventional analysis with conventional idealized VCO model.

Adrenocortical suppression blocks the memory-enhancing effects of amphetamine and epinephrine.

This study examined glucocorticoid-adrenergic interactions in modulating acquisition and memory storage for inhibitory avoidance training. Systemically (s.c.) administered amphetamine (1 mg/kg), but not epinephrine (0.1 mg/kg) or the peripherally acting amphetamine derivative 4-OH amphetamine (2 mg/kg), given to rats shortly before training facilitated acquisition performance in a continuous multiple-trial inhibitory avoidance (CMIA) task. Adrenocortical suppression with the 11beta-hydroxylase inhibitor metyrapone (50 mg/kg; s.c.), given to rats 90 min before training, did not block the effect of amphetamine and did not affect acquisition performance of otherwise untreated animals. Retention of CMIA and one-trial inhibitory avoidance was enhanced by either pre- or posttraining injections of amphetamine as well as 4-OH amphetamine and epinephrine. The finding that injections of amphetamine and epinephrine have comparable effects on memory is consistent with the view that amphetamine may modulate memory storage, at least in part, by inducing the release of epinephrine from the adrenal medulla. Metyrapone pretreatment blocked the memory-enhancing effects of amphetamine, 4-OH amphetamine, and epinephrine but did not affect retention performance of otherwise untreated animals. Posttraining injections of different doses of epinephrine (ranging from 0.0001 to 1.0 mg/kg) produced a dose-dependent memory enhancement for inhibitory avoidance training and metyrapone blocked the memory-enhancing effects of all these doses. These findings provide further evidence that the sympathoadrenal and adrenocortical systems are intimately coupled during processes of memory storage.

The role of number and spacing of CS-US pairings in conditioned suppression

In four studies, with rats as Ss. acquisition and. where appropriate, extinction trials were presented against a baseline of ongoing licking. At shock intensities of 0.1. 0.5. 1.0, or 2.0 mA, acquisition performance was a function of number of CS-US pairings: spacing of trials (one or two per day) did not affect acquisition performance. Resistance to extinction could be predicted from terminal acquisition performance and reached a maximum after three CS-US pairings.

The effect of different rewards under two different conditions on the performance of first-graders

The acquisition and extinction of a discrimination response as a function of reward and condition was investigated. Each S was assigned to one of four reward groups, under one of two conditions. The results indicated that magnitude and type of reward do not significantly affect acquisition performance of first-graders, though a differential hierarchy of reward preference is evident in the degree of resistance to extinction.