Firm Performance Before versus After an M&A: The Role of Marketing Effectiveness and Marketing Efficiency

Abstract

Mergers and acquisitions (M&As) have become increasingly popular in business practice in recent years The literature discussed the most common motive for M&As which is the achievement of synergy However the findings in the research showed that M&As have a poor record of success which leaves the discussion to remain open to question whether synergies are achievable through M&A Mainly researchers are rarely focused on the comprehensive effect of M&A This study aims to further investigate: how do marketing effectiveness and efficiency affect firm performance and how does the effect differs between before a horizontal M&A and after a horizontal M&A We developed a set of hypotheses tested on a sample of 516 horizontal M&As from US firms in the period between 2008 to 2017 We found that marketing effectiveness has a positive relationship with firm performance for both before and after horizontal M&As Further the positive relationship between marketing effectiveness and firm performance is stronger after the horizontal M&A Besides we found that marketing efficiency has no relationship with firm performance before horizontal M&A deals However the relationship between marketing efficiency and firm performance becomes positive after horizontal M&A

Date of Award	2020
Original language	English
Supervisor	Chiung-Hui Tseng (Supervisor)