Document Type
Article
Publication Date
9-5-2024
Abstract
Excerpt: This paper examines the relationship between a prime contractor's financial health and its mergers and acquisitions (M&A) spending in the defense industry. It aims to provide models that give the United States Department of Defense (DoD) indications of future M&A activity, informing decision-makers and contributing to ensuring competitive markets that benefit the consumer.
The results show a significant relationship between efficiency and M&A spending, indicating that companies with lower efficiency tend to spend more on M&As. However, there was no significant relationship between M&A spending and a company's profitability or solvency. These results were consistent with previous research and the study's hypotheses for profitability and solvency. However, the effect of liquidity was the opposite of the expected result, possibly due to the defense industry's different view on liquidity compared to previous research.
Source Publication
Journal of Defense Analytics and Logistics
Recommended Citation
Mack, C., Koschnick, C., Brown, M., Ritschel, J.D. and Lucas, B. (2024), "A panel data regression model for defense merger and acquisition activity", Journal of Defense Analytics and Logistics, [advance of print] https://doi.org/10.1108/JDAL-03-2024-0005
Included in
Defense and Security Studies Commons, Systems Engineering and Multidisciplinary Design Optimization Commons
Comments
All articles published in JDAL are published Open Access under a Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. CC BY 4.0
Sourced from the publisher version of record at Emerald. The citation and DOI link are noted below.