The Role of Business Ethics in Merger and Acquisition Success: An Empirical Study

Authors: Lin, Carol¹; Wei, Yu-Chen²

Source: Journal of Business Ethics, Volume 69, Number 1, November 2006 , pp. 95-109(15)

Publisher: Springer

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Abstract:

The purpose of this paper is to explore job performance, mergers and acquisitions (M&A) from an ethical perceptive. A great number of studies have extensively discussed the link between M&A and performance; however, most focused on the financial functions and strategy selections. Although ethical issues emerge in the M&A process, it is a less studied area. This study adopted the structural equation modeling approach to empirically test our hypotheses. Based on 264 samples from financial companies, data analyses indicated that ethical conduct in M&A is significantly correlated with employee job performance. Ensuring employment security and caring practices can significantly explain organizational commitment. Organizational commitment also plays a significant mediating role between a company's ethical conduct and employee job performance. Managerial implications are also provided.

Keywords: mergers and acquisitions; business ethics; organizational commitment; job performance

Document Type: Research article

DOI: http://dx.doi.org/10.1007/s10551-006-9070-0

Affiliations: 1: Email: yehyunln@nccu.edu.tw 2: Email: ycwei@nccu.edu.tw

Publication date: 2006-11-01