Integrating Relative Standing and Market discipline

A complexity theory perspective of post-merger and acquisition executive departure

Akie Iriyama, Jason W. Park, Franky Supriyadi, Haibin Yang

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Mergers and acquisitions (M&As) typically accelerate target top management team (TMT) executive departures. Market discipline and Relative Standing are two major and competing economic and sociological explanations for this phenomenon which lack a satisfactory theoretical integration. To fill this gap in the literature, we model the M&A market as a complex adaptive system composed of TMTs which rid themselves of executives via self-organized critical processes, generating M&A market-level properties that are emergent, or not easily explained with reference to the individual TMTs. The observation of an emergent power law distribution in target TMT executive retention rates for M&A activities in the United States supports our interpretation.

Original languageEnglish
Title of host publicationAdvances in Mergers and Acquisitions
Pages181-197
Number of pages17
Volume11
DOIs
Publication statusPublished - 2012
Externally publishedYes

Publication series

NameAdvances in Mergers and Acquisitions
Volume11
ISSN (Print)1479361X

Fingerprint

Mergers and acquisitions
Complexity theory
Relative standing
Market discipline
Top management teams
Power-law distribution
Complex adaptive systems
Economics

Keywords

  • Complex adaptive systems
  • Mergers and acquisitions
  • Power law distribution
  • Self-organized criticality
  • Top management teams

ASJC Scopus subject areas

  • Business and International Management

Cite this

Iriyama, A., Park, J. W., Supriyadi, F., & Yang, H. (2012). Integrating Relative Standing and Market discipline: A complexity theory perspective of post-merger and acquisition executive departure. In Advances in Mergers and Acquisitions (Vol. 11, pp. 181-197). (Advances in Mergers and Acquisitions; Vol. 11). https://doi.org/10.1108/S1479-361X(2012)0000011012

Integrating Relative Standing and Market discipline : A complexity theory perspective of post-merger and acquisition executive departure. / Iriyama, Akie; Park, Jason W.; Supriyadi, Franky; Yang, Haibin.

Advances in Mergers and Acquisitions. Vol. 11 2012. p. 181-197 (Advances in Mergers and Acquisitions; Vol. 11).

Research output: Chapter in Book/Report/Conference proceedingChapter

Iriyama, A, Park, JW, Supriyadi, F & Yang, H 2012, Integrating Relative Standing and Market discipline: A complexity theory perspective of post-merger and acquisition executive departure. in Advances in Mergers and Acquisitions. vol. 11, Advances in Mergers and Acquisitions, vol. 11, pp. 181-197. https://doi.org/10.1108/S1479-361X(2012)0000011012
Iriyama A, Park JW, Supriyadi F, Yang H. Integrating Relative Standing and Market discipline: A complexity theory perspective of post-merger and acquisition executive departure. In Advances in Mergers and Acquisitions. Vol. 11. 2012. p. 181-197. (Advances in Mergers and Acquisitions). https://doi.org/10.1108/S1479-361X(2012)0000011012
Iriyama, Akie ; Park, Jason W. ; Supriyadi, Franky ; Yang, Haibin. / Integrating Relative Standing and Market discipline : A complexity theory perspective of post-merger and acquisition executive departure. Advances in Mergers and Acquisitions. Vol. 11 2012. pp. 181-197 (Advances in Mergers and Acquisitions).
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