Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover
Article first published online: 8 NOV 2006
Copyright © 1989 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 10, Issue 4, pages 307–322, July/August 1989
How to Cite
Walsh, J. P. (1989), Doing a deal: Merger and acquisition negotiations and their impact upon target company top management turnover. Strat. Mgmt. J., 10: 307–322. doi: 10.1002/smj.4250100402
- Issue published online: 8 NOV 2006
- Article first published online: 8 NOV 2006
- Manuscript Revised: 10 OCT 1988
- Manuscript Received: 18 APR 1988
This research investigates the effects of merger and acquisition negotiations on subsequent target company top management turnover. Three attributes of the companies and seven attributes of the merger and acquisition transactions are examined. The results indicate that the primary impact of negotiations is evident in the fourth year after a settlement date. When a buyer approaches an unrelated company that has been subject to previous takeover interest with a merger proposal, and an agreement is reached, the target'S management team is likely to experience abnormally high turnover 4 years later. Additional research ideas are suggested to help explain the sizeable turnover rates in the 3 years immediately following a merger or acquisition.