Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287623 
Year of Publication: 
2021
Citation: 
[Journal:] SN Business & Economics [ISSN:] 2662-9399 [Volume:] 1 [Issue:] 10 [Publisher:] Springer International Publishing [Place:] Cham [Year:] 2021
Publisher: 
Springer International Publishing, Cham
Abstract: 
Using mergers and acquisitions (M&A) deals by companies from the biotechnology and pharmaceutical industry, this study analyzes the role of different types of prior ties between companies. The research distinguishes related alliances into direct and indirect alliances. Related alliances provide access to more information and can reduce transaction costs. The reduction of such costs can lead to a more successful target selection and a more efficient transaction process of the M&A deal because the time from announcement to completion can be reduced. This effect can be explained by trust-building, better access to private information, and certification through related alliances. However, in contrast to other studies, this study does not find statistically significant evidence that supports the hypothesis that alliances increase the post-M&A performance and that alliances are associated with higher announcement returns.
Subjects: 
Mergers and acquisitions
Strategic alliances
Information costs
JEL: 
G34
D74
D82
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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