Park, Jason Whan
(2010)
Riding the wave: Distributional properties and process explanations of merger and acquisition waves.
Doctoral Dissertation, University of Pittsburgh.
(Unpublished)
Abstract
Although Mergers and Acquisitions (M&A) are potential value-creation opportunities, why they tend to occur in waves is a mystery to scholars and managers alike. Most models of M&A waves are unilevel, reductionist, and Gaussian, whereas wave patterns are arguably multi-level, emergent, and non-normally distributed. Using complexity theory, I interpret waves as emergent expressions of a self-organized critical ecology of firms conceptualized as a complex adaptive system. My observation that aggregate U.S. M&A waves from 1895 to 2008 are power-law-distributed lends support. The view that waves are self-organized critical phenomena, similar to earthquakes and avalanches, facilitates integration of prior wave theories. I then employ process-tracing to generate a historical narrative of the Great Merger Wave of 1898-1903, from which I obtain a robust process for waves consistent with a CAS interpretation of these phenomena: (1) a privatizing, market-expanding and financially innovating transportation network generates (2a) laissez-faire regulation, (2b) economic competition, and (2c) financial arbitrage, leading to (3) a burst of consolidation. My process explanation explains the power law's emergence, and may help to understand better the process dynamics of M&A waves.
Share
| Citation/Export: |
|
| Social Networking: |
|
Details
| Item Type: |
University of Pittsburgh ETD
|
| Status: |
Unpublished |
| Creators/Authors: |
|
| ETD Committee: |
|
| Date: |
5 October 2010 |
| Date Type: |
Completion |
| Defense Date: |
28 April 2010 |
| Approval Date: |
5 October 2010 |
| Submission Date: |
26 July 2010 |
| Access Restriction: |
No restriction; Release the ETD for access worldwide immediately. |
| Institution: |
University of Pittsburgh |
| Schools and Programs: |
Joseph M. Katz Graduate School of Business > Business Administration |
| Degree: |
PhD - Doctor of Philosophy |
| Thesis Type: |
Doctoral Dissertation |
| Refereed: |
Yes |
| Uncontrolled Keywords: |
complex adaptive system; complexity theory; emergence; Great Merger Wave; Merger and acquisition waves; power law; process tracing; punctuated equilibrium; qualitative methodologies; robust process; self-organized criticality |
| Other ID: |
http://etd.library.pitt.edu/ETD/available/etd-07262010-121919/, etd-07262010-121919 |
| Date Deposited: |
10 Nov 2011 19:54 |
| Last Modified: |
15 Nov 2016 13:47 |
| URI: |
http://d-scholarship.pitt.edu/id/eprint/8625 |
Metrics
Monthly Views for the past 3 years
Plum Analytics
Actions (login required)
 |
View Item |
![[feed]](/images/feed-icon-32x32.png){kind=icon}