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The Role of Interorganizational Trust in the Merger and Acquisition Process

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Date Issued:
2015
Summary:
Although recognized as an important stage of the merger and acquisition (M&A) process, little is understood about the processes that unfold during deal negotiations. In line with recent qualitative research highlighting the role of interorganizational trust, I examine the role of acquirer trust during M&A negotiations. Specifically, through two essays, I consider the effects of acquirer trust on two outcome variables: the acquisition premium and target executive retention. In Essay One, I integrate the social embeddedness theory and agency theory and find that acquirer trust leads to higher premiums. In Essay Two, I integrate the social embeddedness perspective with justice theory and find that the positive relationship between acquirer trust and target executive retention is mediated by justice. Boundary conditions are also considered in each essay. These two essay provide contributions to the nascent literature on M&A negotiations and the complex role of trust in M&A negotiations.
Title: The Role of Interorganizational Trust in the Merger and Acquisition Process.
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Name(s): Parola, Heather R., author
Ellis, Kimberly M., Thesis advisor
Florida Atlantic University, Degree grantor
College of Business
Department of Management
Type of Resource: text
Genre: Electronic Thesis Or Dissertation
Date Created: 2015
Date Issued: 2015
Publisher: Florida Atlantic University
Place of Publication: Boca Raton, Fla.
Physical Form: application/pdf
Extent: 162 p.
Language(s): English
Summary: Although recognized as an important stage of the merger and acquisition (M&A) process, little is understood about the processes that unfold during deal negotiations. In line with recent qualitative research highlighting the role of interorganizational trust, I examine the role of acquirer trust during M&A negotiations. Specifically, through two essays, I consider the effects of acquirer trust on two outcome variables: the acquisition premium and target executive retention. In Essay One, I integrate the social embeddedness theory and agency theory and find that acquirer trust leads to higher premiums. In Essay Two, I integrate the social embeddedness perspective with justice theory and find that the positive relationship between acquirer trust and target executive retention is mediated by justice. Boundary conditions are also considered in each essay. These two essay provide contributions to the nascent literature on M&A negotiations and the complex role of trust in M&A negotiations.
Identifier: FA00004532 (IID)
Degree granted: Dissertation (Ph.D.)--Florida Atlantic University, 2015.
Collection: FAU Electronic Theses and Dissertations Collection
Note(s): Includes bibliography.
Subject(s): Consolidation and merger of corporations -- Psychological aspects
Consolidation and merger of corporations -- Social aspects
Corporate culture
Group decision making
Organizational behavior -- Moral and ethical aspects
Held by: Florida Atlantic University Libraries
Sublocation: Digital Library
Links: http://purl.flvc.org/fau/fd/FA00004532
Persistent Link to This Record: http://purl.flvc.org/fau/fd/FA00004532
Use and Reproduction: Copyright © is held by the author, with permission granted to Florida Atlantic University to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
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Host Institution: FAU
Is Part of Series: Florida Atlantic University Digital Library Collections.