In the Information Technology Sector
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.
Business | Finance and Financial Management
Hevert, Kathleen, "In the Information Technology Sector" (2006). Board of Research Working Papers. 25.