Limits...
Shared vision and autonomous motivation vs. financial incentives driving success in corporate acquisitions.

Clayton BC - Front Psychol (2015)

Bottom Line: Acquirers understand that achieving the performance improvements necessary to cover these costs and create value for investors will most likely require a significant effort from mergers and acquisitions (M&A) management teams.This understanding drives the common and longstanding practice of offering hefty performance incentive packages to key managers, assuming that financial incentives will induce in-role and extra-role behaviors that drive organizational change and growth.The present study debunks the assumptions of this common M&A practice, providing quantitative evidence that shared vision and autonomous motivation are far more effective drivers of managerial performance than financial incentives.

View Article: PubMed Central - PubMed

Affiliation: Case Western Reserve University Cleveland, OH, USA.

ABSTRACT
Successful corporate acquisitions require its managers to achieve substantial performance improvements in order to sufficiently cover acquisition premiums, the expected return of debt and equity investors, and the additional resources needed to capture synergies and accelerate growth. Acquirers understand that achieving the performance improvements necessary to cover these costs and create value for investors will most likely require a significant effort from mergers and acquisitions (M&A) management teams. This understanding drives the common and longstanding practice of offering hefty performance incentive packages to key managers, assuming that financial incentives will induce in-role and extra-role behaviors that drive organizational change and growth. The present study debunks the assumptions of this common M&A practice, providing quantitative evidence that shared vision and autonomous motivation are far more effective drivers of managerial performance than financial incentives.

No MeSH data available.


Path diagram.
© Copyright Policy - open-access
Related In: Results  -  Collection

License
getmorefigures.php?uid=PMC4285020&req=5

Figure 3: Path diagram.

Mentions: Table 6 lists the statistical relationships between the constructs in the final structural model. The r2 statistic represents the amount of variability in the dependent variable that can be explained by the independent variables. The unstandardized coefficient indicates raw strength of the influence of each independent variable on the dependent variable. Finally, the t-value provides the significance of each coefficient. A graphical representation of the structural model summarizing the statistical relationships between constructs is shown in Figure 3.


Shared vision and autonomous motivation vs. financial incentives driving success in corporate acquisitions.

Clayton BC - Front Psychol (2015)

Path diagram.
© Copyright Policy - open-access
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4285020&req=5

Figure 3: Path diagram.
Mentions: Table 6 lists the statistical relationships between the constructs in the final structural model. The r2 statistic represents the amount of variability in the dependent variable that can be explained by the independent variables. The unstandardized coefficient indicates raw strength of the influence of each independent variable on the dependent variable. Finally, the t-value provides the significance of each coefficient. A graphical representation of the structural model summarizing the statistical relationships between constructs is shown in Figure 3.

Bottom Line: Acquirers understand that achieving the performance improvements necessary to cover these costs and create value for investors will most likely require a significant effort from mergers and acquisitions (M&A) management teams.This understanding drives the common and longstanding practice of offering hefty performance incentive packages to key managers, assuming that financial incentives will induce in-role and extra-role behaviors that drive organizational change and growth.The present study debunks the assumptions of this common M&A practice, providing quantitative evidence that shared vision and autonomous motivation are far more effective drivers of managerial performance than financial incentives.

View Article: PubMed Central - PubMed

Affiliation: Case Western Reserve University Cleveland, OH, USA.

ABSTRACT
Successful corporate acquisitions require its managers to achieve substantial performance improvements in order to sufficiently cover acquisition premiums, the expected return of debt and equity investors, and the additional resources needed to capture synergies and accelerate growth. Acquirers understand that achieving the performance improvements necessary to cover these costs and create value for investors will most likely require a significant effort from mergers and acquisitions (M&A) management teams. This understanding drives the common and longstanding practice of offering hefty performance incentive packages to key managers, assuming that financial incentives will induce in-role and extra-role behaviors that drive organizational change and growth. The present study debunks the assumptions of this common M&A practice, providing quantitative evidence that shared vision and autonomous motivation are far more effective drivers of managerial performance than financial incentives.

No MeSH data available.