Title

In the Information Technology Sector

Comments

For full text, please contact the Babson Faculty Research Fund.

Abstract

This study examines whether serial acquirers create or destroy shareholder wealth, using a sample of 211 large U.S. firms within the information technology sector between 1980 and 2002. It also explores whether different types of series are differentially associated with long-term performance. We find that, while our sample outperforms the market overall, non-acquirers perform significantly better than acquirers. Among acquirers, declining performance arises from increased acquisition activity, and the length of an acquisition series not to matter. Method of payment and target status are not significantly linked to performance. The only acquirer type performing on par with non-acquirers is those undertaking series comprised of moderate-sized acquisitions.

Disciplines

Business | Finance and Financial Management

This document is currently not available here.

Share

COinS