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- Publisher Website: 10.1016/j.ijresmar.2020.11.006
- Scopus: eid_2-s2.0-85098211952
- WOS: WOS:000697053200005
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Article: The impact of mergers and acquisitions on brand equity: A structural analysis
Title | The impact of mergers and acquisitions on brand equity: A structural analysis |
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Authors | |
Keywords | Brand equity Mergers and acquisitions Structural modeling |
Issue Date | 2021 |
Citation | International Journal of Research in Marketing, 2021, v. 38, n. 3, p. 615-638 How to Cite? |
Abstract | An overlooked strategic benefit of mergers and acquisitions (M&As) is their impact on brand equity. M&As may affect consumer brand preferences, which in turn will affect a firm's profit. We develop a structural model with a difference-in-differences specification to measure how M&As affect a firm's profit through three mechanisms: brand equity, cost synergies, and product portfolios. We analyze Lenovo's acquisition of IBM's PC division in China's PC market and find that the increase in brand equity contributed the most to increasing Lenovo's profit, followed by cost synergies. To explore the generalizability of our modeling approach, we apply it to Geely's acquisition of Volvo and also find that the gains in brand equity contributed the most to Geely's profit increase. |
Persistent Identifier | http://hdl.handle.net/10722/318892 |
ISSN | 2023 Impact Factor: 5.9 2023 SCImago Journal Rankings: 3.352 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Chu, Yanlai | - |
dc.contributor.author | Chu, Junhong | - |
dc.contributor.author | Liu, Hongju | - |
dc.date.accessioned | 2022-10-11T12:24:47Z | - |
dc.date.available | 2022-10-11T12:24:47Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | International Journal of Research in Marketing, 2021, v. 38, n. 3, p. 615-638 | - |
dc.identifier.issn | 0167-8116 | - |
dc.identifier.uri | http://hdl.handle.net/10722/318892 | - |
dc.description.abstract | An overlooked strategic benefit of mergers and acquisitions (M&As) is their impact on brand equity. M&As may affect consumer brand preferences, which in turn will affect a firm's profit. We develop a structural model with a difference-in-differences specification to measure how M&As affect a firm's profit through three mechanisms: brand equity, cost synergies, and product portfolios. We analyze Lenovo's acquisition of IBM's PC division in China's PC market and find that the increase in brand equity contributed the most to increasing Lenovo's profit, followed by cost synergies. To explore the generalizability of our modeling approach, we apply it to Geely's acquisition of Volvo and also find that the gains in brand equity contributed the most to Geely's profit increase. | - |
dc.language | eng | - |
dc.relation.ispartof | International Journal of Research in Marketing | - |
dc.subject | Brand equity | - |
dc.subject | Mergers and acquisitions | - |
dc.subject | Structural modeling | - |
dc.title | The impact of mergers and acquisitions on brand equity: A structural analysis | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.ijresmar.2020.11.006 | - |
dc.identifier.scopus | eid_2-s2.0-85098211952 | - |
dc.identifier.volume | 38 | - |
dc.identifier.issue | 3 | - |
dc.identifier.spage | 615 | - |
dc.identifier.epage | 638 | - |
dc.identifier.isi | WOS:000697053200005 | - |