Current Search: Ellis, Kimberly M. (x)
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Title
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The Role of Interorganizational Trust in the Merger and Acquisition Process.
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Creator
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Parola, Heather R., Ellis, Kimberly M., Florida Atlantic University, College of Business, Department of Management
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Abstract/Description
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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...
Show moreAlthough 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.
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Date Issued
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2015
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PURL
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http://purl.flvc.org/fau/fd/FA00004532, http://purl.flvc.org/fau/fd/FA00004532
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Subject Headings
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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
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Format
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Document (PDF)
