Mergers and Acquisitions for Business Sustainability in Emerging Markets During a Vague Era: A Literature Analysis

Mergers and acquisitions are the most popular modes of external corporate growth. Business sustainability, which seeks present returns without compromising the ability to earn returns in the future, has come under serious challenges in an environment of uncertainty. While academic literature suggest...

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Autores:
Ogendo, Joan Lilian
Ariemba, Jared
Tipo de recurso:
Fecha de publicación:
2022
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/33194
Acceso en línea:
http://hdl.handle.net/10784/33194
Palabra clave:
Mergers and acquisitions
Corporate Governance
Vague era
Business Sustainability
Emerging Markets
Fusiones y Adquisiciones
Era Vaga
Sostenibilidad Empresarial
Mercados Emergentes
Gobierno Corporativo
Rights
License
Copyright © 2022 Joan Lilian Ogendo, Jared Ariemba
Description
Summary:Mergers and acquisitions are the most popular modes of external corporate growth. Business sustainability, which seeks present returns without compromising the ability to earn returns in the future, has come under serious challenges in an environment of uncertainty. While academic literature suggests that in periods of fundamental uncertainty, there is a decline of mergers and acquisitions, this paper analyses an emerging body of research that suggests that merger and acquisition deals in a vague era actually deliver more value compared to those made in normal economic conditions, which most empirical studies do not deliver much value for the acquirer. This paper therefore suggests that firms in emerging markets can use mergers and acquisitions during a downturn to deliver superior value to shareholders. It also argues that mergers and acquisitions are a corporate governance issue, because it is at the board level that the overall strategy of the firm is implemented, including the various growth options of the firm. However, further research on merger and acquisitions during a vague era need to be conducted in various regions of emerging markets.