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Geographical peer effect in serial mergers and acquisitions: The influence of social learning and director network.

ABSTRACT: Based on the serial mergers and acquisitions(M&A) data of Chinese A-share listed companies from 2010 to 2019, this paper discusses whether there are geographical peer effects in serial M&A, and tests its mechanism and influence path. The empirical study shows that geographical peer decision-making has geographical peer effects in the decision-making of serial M&A, and the average number of serial M&A of geographical peers has a significant positive impact on the serial M&A decision-making of focal firms. Social learning and director networks are essential to produce geographical peer effects in serial M&A. The external learning mechanism shows that the geographical peer effect of serial M&A decision-making is partly caused by backward firms' social learning to the leading peer firms' decision-making, but vice versa. The director network relationship of focal firms can positively moderate the relationship between the geographical peer firms' average serial M&A decision-making and the focal firm's serial M&A decision-making. This paper reveals the mechanism of geographical peer effect in serial M&A decision-making and provides a new perspective to understand the motivation of serial M&A decision-making. These empirical findings not only provide important empirical evidence on serial M&A from developing countries such as China, but also provide a valuable reference for decision-makers and researchers of serial M&A in the future.

SUBMITTER: Zhang X

PROVIDER: S-EPMC10735032 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature

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Geographical peer effect in serial mergers and acquisitions: The influence of social learning and director network.

Zhang Xiaoxu X Song Yu Y Liao Qiaoran Q

PloS one 20231221 12

Based on the serial mergers and acquisitions(M&A) data of Chinese A-share listed companies from 2010 to 2019, this paper discusses whether there are geographical peer effects in serial M&A, and tests its mechanism and influence path. The empirical study shows that geographical peer decision-making has geographical peer effects in the decision-making of serial M&A, and the average number of serial M&A of geographical peers has a significant positive impact on the serial M&A decision-making of foc ...[more]

PMID: 38128046

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Project description:Research backgroundM&A (Mergers and acquisitions) is a strategic measure for enterprises to expand their scale, enhance their competitiveness and improve productivity in the market competition. As a new factor of production, data is changing the factor input model and value creation path of enterprises.Research objectivesFrom the perspective of serial M&A, this study explores the impact of serial M&A on enterprises' TFP (total factor productivity) and the mechanism of digital transformation between them.Research methodsTake the serial M&A transactions of China's A-share listed companies from 2010 to 2019 as samples, using the theory of organizational learning to analyze the relationship among serial M&A, enterprises' TFP and the degree of digital transformation. Three-step regression is used to construct a model that serial M&A indirectly affects enterprises' TFP through intermediary variable digital transformation.Research findingThere is a significant inverse U-shaped relationship between serial M&A and enterprises' TFP, and digital transformation plays a mediating role in this relationship. The impact of serial M&A on enterprises' TFP shows an upward trend at first and then a downward trend and this relationship is indirectly realized through digital transformation. The results are still valid after considering the change-explained variables, lag test, Sobel-Goodman test, and Bootstrap test. Heterogeneity analysis shows that for enterprises with non-state-owned property rights, smaller enterprise scale, and higher business environment index, serial M&A has a more obvious effect on TFP indirectly through the degree of digital transformation.Research valueIt further enriches the existing literature on the decision-making of M&A from the perspective of serial M&A and profoundly reveals the mechanism of the degree of digital transformation in the relationship between serial M&A and enterprises' TFP. The research provides theoretical support and empirical evidence for enterprises to achieve high-quality development.

Project description:BackgroundThe hospital industry has consolidated substantially during the past two decades and at an accelerated pace since 2010. Multiple studies have shown that hospital mergers have led to higher prices for commercially insured patients, but research about effects on quality of care is limited.MethodsUsing Medicare claims and Hospital Compare data from 2007 through 2016 on performance on four measures of quality of care (a composite of clinical-process measures, a composite of patient-experience measures, mortality, and the rate of readmission after discharge) and data on hospital mergers and acquisitions occurring from 2009 through 2013, we conducted difference-in-differences analyses comparing changes in the performance of acquired hospitals from the time before acquisition to the time after acquisition with concurrent changes for control hospitals that did not have a change in ownership.ResultsThe study sample included 246 acquired hospitals and 1986 control hospitals. Being acquired was associated with a modest differential decline in performance on the patient-experience measure (adjusted differential change, -0.17 SD; 95% confidence interval [CI], -0.26 to -0.07; P = 0.002; the change was analogous to a fall from the 50th to the 41st percentile) and no significant differential change in 30-day readmission rates (-0.10 percentage points; 95% CI, -0.53 to 0.34; P = 0.72) or in 30-day mortality (-0.03 percentage points; 95% CI, -0.20 to 0.14; P = 0.72). Acquired hospitals had a significant differential improvement in performance on the clinical-process measure (0.22 SD; 95% CI, 0.05 to 0.38; P = 0.03), but this could not be attributed conclusively to a change in ownership because differential improvement occurred before acquisition.ConclusionsHospital acquisition by another hospital or hospital system was associated with modestly worse patient experiences and no significant changes in readmission or mortality rates. Effects on process measures of quality were inconclusive. (Funded by the Agency for Healthcare Research and Quality.).

Project description:ImportanceRural hospitals are increasingly merging with other hospitals. The associations of hospital mergers with quality of care need further investigation.ObjectivesTo examine changes in quality of care for patients at rural hospitals that merged compared with those that remained independent.Design, setting, and participantsIn this case-control study, mergers at community nonrehabilitation hospitals in Federal Office of Rural Health Policy-eligible zip codes during 2009 to 2016 in 32 states were identified from Irving Levin Associates and the American Hospital Association Annual Survey. Outcomes for inpatient stays for select conditions and elective procedures were derived from the Healthcare Cost and Utilization Project State Inpatient Databases. Difference-in-differences linear probability models were used to assess premerger to postmerger changes in outcomes for patients discharged from merged vs comparison hospitals that remained independent. Data were analyzed from February to December 2020.ExposuresHospital mergers.Main outcomes and measuresThe main outcome was in-hospital mortality among patients admitted for acute myocardial infarction (AMI), heart failure, stroke, gastrointestinal hemorrhage, hip fracture, or pneumonia, as well as complications during stays for elective surgeries.ResultsA total of 172 merged hospitals and 266 comparison hospitals were analyzed. After matching, baseline patient characteristics were similar for 303 747 medical stays and 175 970 surgical stays at merged hospitals and 461 092 medical stays and 278 070 surgical stays at comparison hospitals. In-hospital mortality among AMI stays decreased from premerger to postmerger at merged hospitals (9.4% to 5.0%) and comparison hospitals (7.9% to 6.3%). Adjusting for patient, hospital, and community characteristics, the decrease in in-hospital mortality among AMI stays 1 year postmerger was 1.755 (95% CI, -2.825 to -0.685) percentage points greater at merged hospitals than at comparison hospitals (P < .001). This finding held up to 4 years postmerger (DID, -2.039 [95% CI, -3.388 to -0.691] percentage points; P = .003). Greater premerger to postmerger decreases in mortality at merged vs comparison hospitals were also observed at 5 years postmerger among stays for heart failure (DID, -0.756 [95% CI, -1.448 to -0.064] percentage points; P = .03), stroke (DID, -1.667 [95% CI, -3.050 to -0.283] percentage points; P = .02), and pneumonia (DID, -0.862 [95% CI, -1.681 to -0.042] percentage points; P = .04).Conclusions and relevanceThese findings suggest that rural hospital mergers were associated with better mortality outcomes for AMI and several other conditions. This finding is important to enhancing rural health care and reducing urban-rural disparities in quality of care.

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Geographical peer effect in serial mergers and acquisitions: The influence of social learning and director network.

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Geographical peer effect in serial mergers and acquisitions: The influence of social learning and director network.

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