| Abstract |
In the quickly changing and globalizing environment, mergers and acquisitions (M&As) are becoming a popular strategic alternative. Because M&As involve various complex issues, the importance of learning associated with M&As has been emphasized. In this regard, researchers have accumulated important theoretical and empirical contributions. Although, the underpinnings of most of the research on organizational learning are a behavioral theory, the research on M&As and learning often takes a rational perspective. While some studies examine the erroneous aspects of learning in the context of M&As, they did not pay attention to such key ideas of behavioral theory as satisficing, uncertainty avoidance, and politics. To fill the gaps, we look at failed acquisition attempts and examine how the experience of a failed acquisition attempt influences subsequent acquisition activities. By comparing a sample of 82 Japanese public firms that experienced a failed acquisition attempt with 82 control firms that completed an acquisition between 1999 and 2009, we test our hypotheses. We further consider how the stock market's responses to the initial acquisition announcement and abandonment announcement moderate the relationship. |