Research on Merger Performance: A Review and a Critique

In recent times there has been an explosion in the number and value of mergers and acquisitions. The pressing question that is argued by both managers and academicians relates to the performance of these high value decisions. This paper examines the literature relating to the performance of mergers and acquistions with a view to throwing some light on the question. Criticisms of the existing literature are provided, as also are specific recommendations for future research such as including more longitudinal instead of cross‐sectional studies.