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http://bura.brunel.ac.uk/handle/2438/29820
Title: | Technology acquisitions and investor expectations: Reputation and expectancy violation perspectives |
Authors: | Chaturvedi, T |
Keywords: | technology acquisitions;financial market investors;value creation reputation;expectancy violation;firm survival;technological change |
Issue Date: | 1-Oct-2024 |
Publisher: | Wiley on behalf of European Academy of Management (EURAM) |
Citation: | Chaturvedi, T. (2024) 'Technology acquisitions and investor expectations: Reputation and expectancy violation perspectives', European Management Review, 0 (ahead of print), pp. 1 - 19. doi; 10.1111/emre.12687. |
Abstract: | Employing the organizational reputation lens and expectancy violation theory (EVT), I examine how financial market investors (investors) affect the technology acquisition activity and the likelihood of survival of firms facing technological change. I theorize that when a firm has a growth reputation, that is, investors expect revenue growth in future periods, the likelihood of making an acquisition will increase in anticipation of a positive expectancy violation on the part of investors. In contrast, for a firm that has an income reputation, that is, investors expect shareholder returns in future periods, the likelihood of making an acquisition will decrease in avoidance of a negative expectancy violation on the part of investors. I predict a novel moderating effect of investor expectations—a firm's acquisition activity will exert a stronger positive effect on its likelihood of surviving technological change when investor expectations are growth-oriented, that is, when there is a positive expectancy violation. Using a multi-industry sample of industry convergence, a salient form of technological change, I find support for my theoretical predictions. I advance research that examines the reactions of investors to firm strategies during technological change to the domain of technology acquisitions, a salient strategic decision. I also expand the predictive utility of the reputation lens and EVT to the context of firm survival during technological change. |
Description: | Data Availability Statement: The data that support the findings of this study are available from the corresponding author upon reasonable request. Supporting Information is available online at: https://onlinelibrary.wiley.com/doi/10.1111/emre.12687#support-information-section . |
URI: | https://bura.brunel.ac.uk/handle/2438/29820 |
DOI: | https://doi.org/10.1111/emre.12687 |
ISSN: | 1740-4754 |
Other Identifiers: | ORCiD: Tuhin Chaturvedi https://orcid.org/0000-0003-1809-1935 |
Appears in Collections: | Brunel Business School Research Papers |
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