상세정보
학술지
Mergers and Acquisitions in the Telecommunications Industry : Myths and Reality
- 저자
- 박명철, 양동훈, 남찬기, 하영욱
- 발행일
- 200202
- 출처
- ETRI Journal, v.24 no.1, pp.56-64
- ISSN
- 1225-6463
- 출판사
- 한국전자통신연구원 (ETRI)
- 협약과제
- 02KE1400, 집단 거주 지역에서의 KT 초고속 인터넷 사업경쟁 우위 확보전략 연구, 황호영
- 초록
- This paper investigates how market participants react to mergers and acquisitions (M&As) involving telecommunications companies. The empirical evidence suggests that such activities convey bad news to the market. This is consistent with the synergy trap hypothesis and extant empirical findings of value-reducing diversification strategies in recent literature. The evidence also indicates that a cross-border, rather than a domestic M&A deal, is the main driver of the negative market reaction. Further, our evidence of negative impacts on the bidder's business after an M&A reinforces our main finding that market participants, on average, perceive M&A activities to be detrimental to shareholder value. This suggests that value creation or synergy through an M&A deal is not warranted even through it can generate an increase in size of the firm.
- KSP 제안 키워드
- Empirical Evidence, Market participants, Mergers and acquisitions, Negative impact, Value creation, bad news, cross-border, diversification strategies, telecommunications industry