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M&A Success: Research Agenda for the Lodging Industry

Please see the attached article, "What We Know about M&A Success: A Research Agenda for the Lodging Industry" by Linda Canina, Jin-Young Kim and Qingzhong Ma.

Critique the merger and acquisition article in order to highlight gaps in the literature review, the method of analysis used in the methodology, and the reasons for failure or sucess of the M&A.


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Step 1
You should say that gaps in literature review are: The article begins with statistics related to mergers and acquisitions in the lodging industry but do not specify the sources of the data. The literature focuses on value created in the lodging industry. It considers mergers to be successful if it creates value for both the parties. This is a narrow perspective. Value is being assessed from the effect on share value and future value of dividends. The gap in this review is that share values may be affected by several other factors and may not be related to the merger. For example, if there is general buoyancy in the stock markets the price of shares may rise after a merger but that does not mean there is an increase in value because ...

Solution Summary

This solution explains the factors that lead to merger success. The sources used are also included in the solution.