Moving motives: How past and present strategy influence the market

We are very proud to announce that PLOS ONE published a research article by members of the FINDER team: Rick Aalbers and Jonas Röttger, who joined forces with Killian McCarthy and Menno Huisman, resulting into:

Moving motives: How past and present strategy influence the market

In the article the authors discuss how research often only considers the performance of a single acquisition, or the effects of a single acquisition on the performance of the acquiring firm, showing that acquisition motive matters. However, firms often make multiple acquisitions and research recognizes that firms must both explore and exploit to sustain their competitiveness. There is evidence too to suggest that firms use some acquisitions to explore and others to exploit.

This raises a number of interesting questions. For example, do investors take the ’portfolio’ of acquisitions into account when reacting to an announcement of an acquisition? Does the market react to the switch in strategy from exploration to exploitation? And if it does, does the market prefer a switch to exploration or exploitation?

Read the full article in which Rick, Kilian, Jonas and Menno investigate the market’s reactions to serial acquirers that switch strategy here.

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