An empirical analysis of the influence of corporate mergers on organizational slack.
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Authors
Hingtgen, David L.
Subjects
mergers
acquisitions
organizational slack
acquisitions
organizational slack
Advisors
Euske, Kenneth J.
Moses, O. Douglas
Date of Issue
1987-06
Date
June 1987
Publisher
Language
en_US
Abstract
This thesis analyzes the effects of corporate mergers on
organizational slack. It is hypothesized that organizational
slack will be reduced in the acquiring firms following
the merger. Further, it is hypothesized that the type of
merger will affect the resultant change in slack. A multidimensional
financial model is used to measure change in
slack between pre- and post-merger time frames for 50
mergers that occurred in 1977 and 1978. Similar measures
are calculated for a control group of 43 nonmerging firms.
It is found that the merged firms undergo significantly
greater reductions in slack than their nonmerging
counterparts. Among the merged firms, horizontal mergers
show the largest decrease in slack, followed by vertical
mergers, and finally conglomerates.
Type
Thesis
Description
Series/Report No
Department
Administrative Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funding
Format
103 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.