Ivanov A.E.South Ural State University (National Research University), Chelyabinsk, Russian Federation ivanov.chel@list.ru
Importance As a rule, the Russian economic literature provides only a simple description or examines a small number of motivation theories of mergers and acquisitions. The article analyzes foreign scientific literature and identifies at least a dozen of empirically proven motivation M&A theories. Objectives The purpose of the paper is to improve the methodological support to mergers and acquisitions management. The basis of this improvement is a systematization of the existing motivation theories in this area. Methods The study employs scientific methods of research, like analysis, synthesis, deduction and induction. Articles and monographs of domestic and foreign scholars, dedicated to mergers and acquisitions, are the theoretical and information basis of the research. Results I examined the main motivation theories of mergers and acquisitions and developed their typology. I identify three types of theories, namely, VBM-theories, agency theories, and the theories of predetermined solutions. They differ in motives of company management implementing mergers or acquisitions. Conclusions and Relevance The article may help researchers to better understand the processes taking place in the M&A market. It may also be interesting to business owners for developing their company's growth strategy.
Keywords: mergers and acquisitions, M&A, integration, business combination, motivation
References:
Shura P. Sliyaniya i pogloshcheniya. Putevoditel' po rynku professional'nykh uslug [Mergers and Acquisitions. A guide to the market of professional services]. Moscow, Al'pina Biznes buks Publ., 2004, 192 p. (In Russ.)
Mariyasis A.E., Bersenev V.L. [Pivotal motives for mergers and acquisitions in the world practice]. Zhurnal ekonomicheskoi teorii = Russian Journal of Economic Theory, 2008, no. 3, pp. 174–178. (In Russ.)
Mukhametzhanova G.R. [Combining the activity of oil and gas companies to achieve strategic goals through mergers and acquisitions: methods, motives and implications]. Nauka i biznes: puti razvitiya = Science and Business: Ways of Development, 2014, no. 4, pp. 195–201. (In Russ.)
Fedosov A.G. [Predicting the value and selecting the optimal counterparty in mergers (acquisitions)]. Sibirskaya finansovaya shkola = Siberian Financial School, 2006, no. 2, pp. 23–26. (In Russ.)
Radygin A., Entov R. [The M&A market: new theoretical approaches]. Ekonomicheskaya politika = Economic Policy, 2010, no. 5, pp. 67–91. (In Russ.)
Romanenko O.A. [A theoretical analysis of rationale for mergers and acquisitions]. Nauka i obshchestvo = Science and Society, 2011, no. 2, pp. 66–72. (In Russ.)
Cherenkov A.Ya. [Reasons and motives of corporate mergers and acquisitions]. Finansovye issledovaniya = Financial Research, 2007, no. 14, pp. 80–86. (In Russ.)
Hellgren B., Löwstedt J., Werr A. The Reproduction of Efficiency Theory: The Construction of the AstraZeneca Merger in the Public Discourse. International Journal of Business and Management, 2011, vol. 6, no. 5, pp. 16–27. doi: 10.5539/ijbm.v6n5p16
Trautwein F. Merger Motives and Merger Prescriptions. Strategic Management Journal, 1990, vol. 11, no. 4, pp. 283–295.
Libman A.V. [Theoretical aspects of the agency problem in corporations]. Vestnik Sankt-Peterburgskogo universiteta. Seriya 8. Menedzhment = Vestnik of Saint Petersburg University. Series 8. Management, 2005, no. 1, pp. 123–140. (In Russ.)
Ignatishin Yu.V. Sliyaniya i pogloshcheniya: strategiya, taktika, finansy [Mergers and acquisitions: strategy, tactics, finance]. St. Petersburg, Piter Publ., 2005, 208 p.
Moody J. The Truth about Trusts: A Description and Analysis of the American Trust Movement. New York, Moody Publishing Company, 1904.
Coase R.H. Firma, rynok i parvo [The Firm, the Market, and the Law]. Moscow, Novoe izdatel'stvo Publ., 2007, 224 p.
Marris R.L. A Model of 'Managerial' Enterprise. The Quarterly Journal of Economics, 1963, vol. 77, no. 2, pp. 185–209.
Manne H.G. Mergers and the Market for Corporate Control. The Journal of Political Economy, 1965, vol. 73, no. 2, pp. 110–120.
Gort M. An Economic Disturbance Theory of Mergers. The Quarterly Journal of Economics, 1969, vol. 83, iss. 4, pp. 624–642.
Steiner P.O. Mergers: Motives, Effects, Policies. Ann Arbor, MI, University of Michigan Press, 1975.
Amihud Ya., Lev B. Risk Reduction as a Managerial Motive for Conglomerate Mergers. Bell Journal of Economics, 1981, vol. 12, pp. 605–617.
Bradley M., Desai A., Kim E.H. The Rationale Behind Interfirm Tender Offers: Information or Synergy? Journal of Financial Economics, 1983, no. 11, pp. 183–206.
Jensen M.C. Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economics Review, 1986, vol. 76, no. 2, pp. 323–329.
Roll R. The Hubris Hypothesis of Corporate Takeovers. The Journal of Business, 1986, vol. 59, no. 2, pp. 197–216.
Jemison D.B., Sitkin S.B. Corporate Acquisitions: A Process Perspective. The Academy of Management Review, 1986, vol. 11, pp. 145–163.
Shleifer A., Vishny R.W. Management Entrenchment: The Case of Manager-Specific Investments. Journal of Financial Economics, 1989, vol. 25, pp. 123–139.
Holderness C.G., Sheehan D.P. Raiders or Saviors? The Evidence on Six Controversial Investors. Journal of Financial Economics, 1985, vol. 14, pp. 555–579.
Jovanovic B., Rousseau P. The Q-Theory of Mergers. The American Economic Review, 2002, vol. 92, no. 2, pp. 198–204.
