Research summary: Corporate acquisition is a popular strategic option for firms seeking new resources. However, little research exists on the question of why one firm is chosen over another. We develop a model relating characteristics of similarity and complementarity between acquirers' and...

Past research has primarily focused on what happens after a merger has occurred. This research attempts to find out whether anticipated benefits from the merger do actually accrue. The authors characterize the effects of observed variables on whether pairs of firms merge, vis-à-vis roommate...